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Postcards From Sweden
There are those who claim that rating agencies are utterly irrelevant, incompetent, behind the curve and merely echo chambers of popular opinion. They are 100% right. There is, however, one critical function that rating agencies execute - they put into words what everyone else knows is fact, but are simply unwilling to recognize due to the systemic implications of admitting yet another lie: subprime, failed banks, Europe, etc. By the time a rating agency has finally opined on something in a way indicative of the truth, it is too late to stick one's head in the sand. Yesterday precisely this happened once more - from the WSJ: "Credit rating agency Moody's Investor Service Friday downgraded a range of major banks in Sweden and Norway, citing contagion risks from the European debt crisis. But observers said the cuts were less sweeping than feared and reflect the strength of Nordic banks versus their European peers, which risk sharper downgrades as Moody's continues a Europe-wide review that started earlier this month with cuts to 26 Italian lenders. In February Moody's placed various ratings of 114 financial institutions in 16 European countries on review for possible downgrades, highlighting the banks' vulnerability to the euro zone sovereign debt crisis. "We read this as a sign of the strength in relative terms of Swedish banks which are coping well," Swedish Central Bank Deputy Governor Per Jansson said. Moody's Friday downgraded the ratings for Sweden's Nordea Bank AB (NDA.SK) and Handelsbanken AB (SHB-B.SK) by one notch to Aa3, and for specialist agricultural lender Landshypotek AB by two notches to Baa2." Furthermore, as Zero Hedge reminded two days ago, when it comes to deposit backing, European banks are so levered from a loan-to-deposit ratio, that even the tiniest risk of deposit flight would result in immediate undecapitalization, and further outflows. Oddly, nowehere is this more evident than in various Scandivanian banks such as Danska, Handelsbanken (SHB), Swedbank, and Nordea, two of which were just downgraded by Moody's.
Visually this can be seen here.
Of course, to readers of Zero Hedge this is not news. Back in March this particular fringe blog explicitly warned, while everyone else kept silent that...
With banks such as Danske, SHB, Swebank, DnB, and Nordea literally at 200% Loan-to-Deposits, but most other European banks too, even the tiniest outflow in deposit cash (ala what is happening in the PIIGS) will send the system into yet another liquidity spasm. Only this time, since what little unencumbered assets remaining have already been pledged to the ECB, there will be no quick LTRO collateral-type fix this time.
Sadly, many preferred to continue sticking their heads in the sand. Until Moody's announcement made continuation of that avoidance behavior impossible. Which is why we present the following postcard we just got from Sweden. We can only hope this is a very isolated incident of people enjoying to wait in line for a few pieces of paper, completely devoid of any contextual reference. That, or they are all suddenly applying for a mortgage, or in the best case, merely enjoying the wonderful weather, just incidentally next to a branch of one of Sweden's largest banks.
Finally, for those who think we are picking on Sweden, here again, is the simple math presented visually two short days ago.
Deposits and Encumbered/Secured Assets...
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Free smorgasbord with a new deposit
I can see someone with their feet facing the wall. This tells me it is a picture of an ATM line.
It appears to me, that person is standing in the door opening.
Bankomat google translates into ATM.
Not to worry. It's just an IKEA line for mattresses.
I can see her thong! :)
That's why the dudes are there.....................not to get their money, but to pick up chix...............
Well, it is Memorial Day weekend.
They don't celebrate Memorial Day?
Oh snap!
This is back from when they had lights in Detroit.
http://www.youtube.com/watch?v=6w9PXA2UXAQ&feature=related
How come nobody is texting anybody with a hand held phone?
The dude in blue is Thor!
Thor. Diabeto. They're easily confused.
Lipi-Thor!!!
What you can't see in the photo is the Apple store next to the bank...these are the early birds lining up for the iPhone 5...in three short months, they'll all be texting.
In Sweden that's not a thong. It's floss.
There is an ATM but the building is a bank itself, notice above the window Svenska Handelsbanken in big gold letters all the way down the building, they don't do that for an ATM that already has it's own sign. It is a busy area and there are 9 people in the line waiting to use the machine. I have seen that many in NYC though it seems a lot, maybe they do not have as many machines there. Still 10 people does not make a bank run. If a couple customers in a row have complicated transactions or just never got the hang of ATM's (ever been behind someone that just took forever, making a deposit and checking the balance then doing a transfer and making a mortgage payment then withdrawing cash?) a line can build up fast.
Two other things struck me looking at that picture, they seem to be having better weather near the arctic circle than we are near the California state line/Oregon, and aside from the obese guy at the front of the line look at how slim and trim people there are. Out of 18 people in the photo just ONE needs to shed poundage.
I almost forgot, Sweden has been trying to go cashless hasn't it? If the ATM transactions are other than just a quick FASTCASH dip into checking for some pin money I can see how a line might form.
Now that would REALLY explain the long line. They are all trying to extricate those GOLD LETTERS from the building!
GOT THE 79TH ELEMENT?
The hyper caloric dude is probably from the U.S.
You'd better schedule an appointment with your ophtalmologist. He does not look like a Cherokee, Apache, Mohawk, Hopi, Seminole.....
Can't stop looking at those lines, alright.
I shall now chamge my name to Bankomat.....
Technically, it "could" be a street bathroom. Let's not ignore all possibilities here.
I live in Sweden, and these kind of lines are not uncommon. The thing is that the banks over here are closing down more and more cash-machines, so there are fewer options from where people can take out their money.
"so there are fewer options from where people can take out their money."
All good then. In the meantime, the Loan-to-Deposit ratio is unchanged at 220%. For those who care that is.
Many in Sweden do actually care. The consequense of the Loan-to-Deposit ratio, as you mention, is that real estate prices in Sweden have skyrocketed the last 12 years. This is a very hot-topic over here and people are talking about the real-estate bubble 24/7. The entire swedish economy is driven by this cheap credit that has been and still is being pumped into the market (whatever that means these days...). The greek circus seem to have stalled the real-estate market, and with the problems in Spain, many who have bought real-estate with 300,000 - 1,000,000 USD in credit are beginning to get very worried. In Sweden, you can not write off your mortgage by simply handing over the house-key to the bank (as you can in the US if I am not mistaking). Here, you really are stuck with your debt. The real-estate crash in Sweden and Norway will be extremely severe.
My Father's sister sold her old family home in a village in Halland near the coast north of Halmstad. This was 5 years ago, it was a very old and small cottage, but well kept. She sold at a price that was mindblowingly high! She now has enough money to live comfortably in a retirement apartment and travel, even if she lives to 95!
Real Estate in Sweden is a bubble, it is madness!
Must add that it was within walking distance of a very popular bathing beach. Anything near water, especially sand beach is worth a fortune!
The small cottages are very expensive in Sweden along the entire west coast (as in Halmstad for example), and around Stockholm. They are used as "summerhouses" (sommarstuga in swedish), where many Swedes, Norwegians and Germans spend their summers. It's an old part of the swedish tradiition, and many dream about having these small cottages. For most foreigners, it looks very weird how someone could spend 100,000-200,000 USD on a super small house out in nowhere with zero connections, where you can only stay for about 2-4 months every year. And I happen' to agree...
Didn't Sweden just have a housing bubble (followed by the usual bank crisis) back in the early nineties? It seems a bit odd to dive right back into it again so soon.
Correct, Sweden had an extremely severe housing-bubble in 1990-1992. Many still suffer from the crash today! Unfortunately, everyone born in the 1970's and 1980's were children/teenagers back then. They know very little about it, and it is these who have the biggest mortgages here in Sweden. Those born in the 1960', and especially 1940' and 50', have limited or no debt.
Reson cited for the hight prices use to be rent controlls and building restrictions, leading to a shortage of homes for people. Though I also heard we have one of Europes highest rates of floor-space per person.
Par for the course, the US has a debacle in Vietnam and repeats in Iraq and Afghanistan.
It's called Cape Cod to us foreigners. Yup we have them too. And it costs at least $500,000 (closer to beach goes over a million) for a small cape where you spend a couple of weeks a year and sit through 3 hours of traffic just to cross the bridge.
Join the demoturd party, move up the ranks, get your dacha for free (allow Joe Sixpack and all his descendants the privilege of paying for it).
FORWARD!
What could possibly go wrong? Relax, have a homebrew.
Varberg?
Hey it's Sweden. Probably just another sex-shop walk-thru.
Always refreshing with a little racial profiling. Dick!
Put it this way, Pig Gonads. When I was in Sweden I actually saw a billboard without bare boobs once.
I didn't know being Swedish was a racial trait....
Jesus.
Next thing'll be if I one thinks Chihuahuas are ugly it'll be a racial slur.
you mother may have been a chihuahua, but you are not ungly, k_nuk
Hmmm....is that parable from the hidden gospels?
I blame Jim Henson for my ignorance...
Swedish isn't a race is it? A nationality or culture perhaps...
I thought they were named after the meatballs.
no it's the massages I think.
and I thought it was all about the svenska BJs!
Well now that's really fucking encouraging.
Best get the cash cash in your paw paw real quick, grasshoppers
How long are the PEOPLE going to let the BANKSTERS destroy every society, one by one, with their enginered Boom-Busts? Not til they get to them all before we get to THEM?
Australia, Canada & China fast joining your real estate bust.
Nothing like learning from the Ugly American.
So where are all the beautiful blondes in bikini bathing suits?
Those are some of the ugliest bunch of scruffs ever to be plastered across any fringe web blog.
Oh come on, so you're saying someone out there would bumb uglies with little boy blue at the front of the line?
With those pants he looks likes he's expecting Noah's flood part duex.
Looks like all guys standing in line. Knowing Sweden it could be a sperm bank taking deposits.
Ah, the ole sperm for cash is it?
No wonder its only males standing in line.
I guess blue boy has his hands in his pockets for a reason.
How do you say "HOMIE" in swedish?
Chingaso Mor is right.
He definitely looks ......SKANKYNAVIAN!
STFU Tyler! You're going to wake up these nice sheeple!
Nah, they'll continue to drink their sodium fluoridated water to down their Prozac prescriptions while smoking their Philly blunts. No worries about the sheeple waking up while the drug cartels keep the supply routes open and the pharmacuetical giants keep the legal drug pushers stocked up.
Ooops, that's only in America.
Hope their money doesn't turn into the Kruna.
I live in Sweden, and these kind of lines are not uncommon. The thing is that the banks over here are closing down more and more cash-machines, so there are fewer options from where people can take out their money.
Uhum,
Do Swede's not have Checking accounts, and Debit cards?.Surely a society as advanced as Sweden would allow folks to write checks.
And had Debit cards.
Don't know about Sweden but Japan, which is fairly "advanced" economically does not have any check writing to speak of. Almost all transactions are carried out in cash. And with the Sweden's pushing cashlessness...crunch time at the ol' ATM, mayhaps?
"Uhum,
Do Swede's not have Checking accounts, and Debit cards?.Surely a society as advanced as Sweden would allow folks to write checks.
And had Debit cards."
Yes, we do. But many here still prefer to make their purchases with cash. Some of us don't want Big Brother having an eye on every single purchase we do.
The obese dude at the front is throwing it off for me. Gotta be somewhere in the US..... lol.
nope-1004
ORI?
Hyuk, hyuk, hyuk.
FWIW, this is me...
some-photographs-from-the-process
;-)
ori
Well this is interesting. Am I being accused of being ORI? Hmmm....
First off, I'm not. But lets just say I was. Would it matter? If it matters, why? Also, wouldn't it be rather odd that ORI has replied to some of my posts in the past? Can someone outside of the TBTF banks be that psychotic and reply to "themselves" on ZH?
LOL. Sorry Gully. I only have one username. I don't have time, nor do I feel that I would be that influential, to post under multiple names. I can get my point across rather well with just one name.
I like some of your posts but your defense of the US like it's heaven on earth is sometimes a little much. The US is a fat, lazy country, regardless of what you freedom fighters have done for us in the past. The US is headed for a cliff, and most on here know it. You may have fought for our freedom, but now the banks are stealing that freedom away from all of us, right in front of our eyes. Yet some not only can't see that fact, but still defend what once was.
And I find that very odd.
You look like Jesus...
Darn, he DOES look like me.
Jesus Doppelgangers, I believe it is written that that signals the end of the Euro...
Now if only I could walk on water, I'd be over there to save it in a flash!
ori
Yes, you don't see a lot of that in Sweden. But like everywhere, the exception turns up.
I am in Sweden from time to time, this looks a typical scene, perhaps at lunch time when people crowd out of work to do personal business.
Nevertheless, the point is that these banks are very vulnerable to any Euro crisis. Bankers are the same the world over, leverage junkies and bailout junkies. Just look at Spain, that bank of theirs now want 25 billion from the state! Madness!
And why do they always dress like overgrown five-year-olds?
We should ask his Mommy to buy him some long trousers.
Geez. The guy in the front looks like something outta the log scene in Deliverance.
OK, then I'm hoping, hoping, hoping there's a movie theater just to the left of the bank.
Good that banks are given similar sounding names to Laundromat. That's where they belong.
Wow, if there is a bank run, does this mean I can get a swedish massage at a discount?
Perhaps ... but there won't be a happy ending. Just sayin'.
Nice pic (as far as I can see), +1 for you. Pladizow used to have that nice female ass photo in his profile, that too was nice.
Make sure to comment early and comment often...
That reminds me of one of my most brilliant, albeit unrealized business ideas: sparkling clean public pay toilets, for which one could use an RFID called "EZ-PISS".
not new at all, the old Romans already used to say: RFID non olet.
Technically, you know the reality.
No TD, look at the white ATM reciepts on the ground by the customers feet. That is not toilet paper (I mean it isn't Arkansas).
Does it matter if they are withdrawing cash by ATM instead of at the counter? (by the way the sign above says ATM, so I don't know why the discussion - "Bankomat" means ATM according to google)
The question is: is this a normal line or not? Are they withdrawing at a faster rate or not? The method of withdrawal is not all that relevant.
The poor folks don't have enough cash in accounts to need to withdraw it by speaking with a bank rep. They can pull what little they have from ATM's. If the average Joe is worried about his money being safe (when he only has two weeks pay in his account anyway), that is significant.
However, in the U.S. lines like this always occur on paydays and the days that gov't assistance is distributed. So, it could be "normal".
25th is payday over here for a lot of things. Since we live in a full blown nanny state, most don't have much of a saving habit, so the date is important.
Technically, it "could" be a street bathroom. Let's not ignore all possibilities here.
And how would Bankomat operate with folks pissing into them?.
LOL
Well as the Swedes are apt to say these days.....................
"Better safe than SAABy."
Take a break Ching, you don't have to comment 20 times on every topic.
And U can just skip my posts 2, phuknuts. Besides, it's not 20x. More like 10 or 15 & sometimes not every topic either although it seems like it.
I for one demand that you post at least 20 times on every topic.
hey, liks_ane!
this is tyler's "post card from the edge"
compared to danes, i think the swedes are pretty tame, myself...
Ok ching, maybe just take an extra sec to decide if they're worth posting. I get tired of reading them all to get to the 1 or 2 chucklers.
It's like swinging hard each time for a homer against Randy Johnson. This is a tuff league. Sometimes U connect and sometimes U look like Gomer. Internet sit-down comedy ain't easy, Bud.
I suppose we need some Dave Kingmans; you take enough cuts you're gonna hit a few out every now and again. I suppose the Manny Mota's like myself gotta pick our spots and play good D.
Its a six foot midget with a blue shirt and a beard in front of a line of less prominent personallities. Then there is a middle aged lady with a decent butt walking beside a moron that is dancing stationary for no apparent reason. A pristine snapshot of the long term effects of socialism.
The only ATM in the country?
ABBA ticket line.
Maybe COMICON.
I was thinking Metallica or some other metal band by the looks of the crowd.
Meshuggah, it is Sweden after all...
Nah ... this is the 21st century, so it's more likely a ticket line to see one of the many Scandinavian post-Smiths bands, such as their beloved Acid House Kings or perhaps Cats on Fire visiting from nearby Finland. Second choice would be a restored print of a great early Bergman film, such as Summer Interlude, To Joy or Crisis.
LenninGrad Cowboys
Communist Cowboys for the Cremlin...CCC
Sir, you put the word "great" and "bergman film" in the same sentence.
Meatballs!
Diablo Swing Orchestra
Well, it's from friday night and its the closest ATM to Stockholm Stadium where Ozzy Osbourne later performed. So nothing strange it was a long line in front of this specific ATM. I agree that things are shit, but I don't see Sweden as the first victim in the bank run department, everybody here pays with debit/credit cards even as small payments as 20-30 SEK (2-3€). No one uses cash any longer, Swedbank one of the big four will stop handle cash deposits and withdrawals 2013, yes thats how insane it is....
Let's assume the best ... they are waiting for a bus at that stop our photographer is standing at.
its a royalty peep show. Pippa was in Sweden. WIth her friend who has a small gun, the one who came to Paris in a car. You pay to get to see the gun and Pippa's angelic smile.
How much to see her royal ass?
More likely tickets out of Sweden and away from the ongoing muzzie conquest.
One visit to the bank, ask for a no limit day and withdrawl everything.
I did that with 10000 euro last week and it took me 1 minute at the atm.
But I must say it kind of feels not really safe if people are behind you while your holding a 2 inch stack of notes that poped out of e wall.
Sudden Debt
"your holding a 2 inch stack of notes"
They phase out the 500 Euro note so beloved of dope dealers?
No Gully, Belg ATMs only dish out 50s and 20s (after all, the general idea is for folks to get their day2day squeeze from these things).
Getting larger amounts from your own branch is very straightforward in my experience and 10k is usually do-able. Might have to wait a couple / three days for 20000 upwards and you can specify how you want the notes. They don't blink if you want larger amounts either.
I got very efficient and polite service when I did that.
(In 2010)
I'd bang the blonde walking away.
Yeah.. I'd bang The Swedish...
fonzannoon
All women look good from the back and the further away the better they look.
Her legs look kinda old & cheezy like our Jane Fondue's from the rear.
LOL
Jane Fondue.
Ah, the circles within circles, Cadillac commies, cellulite, private jets and Gert Wilders spawn across the Baltic and North Seas. Something for EveryBody
I don't know man. I gotta quit posting so much. The guy LikHisStain above wants me to cool it. He's probably rite. But this is Fight Club so phuk him even if he is rite.
No way, brother.
Ya'll keep on keepin' on.
attaBoy!
try using quotation marxz?"?"?
:)
You will never find such an ensemble of top notch comedians as the FEMA camp where all ZH posters will be sent to when TSHTF.
Because she's pointing her ass at the ATM machine?
That's Holly from Miami F.L.A.
I thought she was in the backroom?
http://www.spinner.com/2012/05/24/lou-reed-spider/
Seemed relevant..
The economy has been Swedèd.
http://www.imdb.com/title/tt0799934/
I've seen this movie before but, somehow, this time it's different.
The Swedish propaganda cocksucker'z headline probably reads 'Satisfied customers line up early in the day to deposit their money in the safety of Bankomat."
It's an Ipad vending machine...Bullish
Did the cat in the blue shirt not get the memo that blue jeans should, at least, reach the ankle?
cossack55
That's Gaybashing, and will not be allowed.
Capri pants are extremely popular in that region. I think that's what they're called. Estonia also wears them. Probably the Germans too.
welcome to the site!
of just whose pussy is that a picture?
she's latvian, right?
This is your average ATM queue on pay day in Sweden. So don't get your panties in a bunch ZH.
BTW, this is one of the closest ATMs to the venue of an Ozzy Ozborne concert yesterday. FYI, I live a couple of blocks from this ATM. All theses people just need cash to get their drink on (apart from the kid there maybe). Bullish CARLB DK!!
Hmmmm I guessed from the obese dude in front with the shorties on that it was near an Elton John concert
I thought that it was the "system bolaget" line!
HOLLY CRAP- Ozzy WAS in Sweden yesterday!
TAKE THAT, SKEPTICS!
http://gravediggerradio.com/grave-digger-radio-ozzy-osbourne-tour-dates
No one in that line is a true metal head. Bunch of posers starting with frontliner phat smurf.
This is not a bankrun, typical yellowpress ZH suggestive mainstream bullshit.
Niall Ferguson , stratfor, get a life NWO shoeshine boys.
If ZH got a picture of a couple fucking in a doorway we'd immediately get a big story about how we're all getting screwed.
If it was Angela in her kitchen door you could see Moscow while groping her cellulite bags.
...marla comes out tyler's door...
Swedes seem to like black clothing...foreshadowing?
I'm partial to Blue Swede shoes myself.
Touche.
Loan to Deposit ratio is not the end-all-be-all of bank liquidity analysis. You have to look at cash and cash equivalents and short-term loans / current loans due vs deposits.
In terms of solvency, L2D is almost useless. Loans are assets and deposits are liabilities - so in a weird way having more loans then deposits COULD mean the banks is VERY solvent. Please note I said COULD - not DOES. In fact many of the banks high on this list are in trouble with regard to solvency - but not because of this measure. You have to look at a risk weighted / loss weighted loans and the different tiers of capital.
If you were to do that, you would see the Nords go down on your list.
Yes, that type of thinking worked so well for CountryWide, Wachovia, and all the others that Sub-Primed themselves out like crack whores on a Saturday night.
"You have to look at cash and cash equivalents and short-term loans / current loans due vs deposits."
Do you really, I mean really, think it makes a difference when you look at the macro picture? A few honest folks are paying back short term loans and THAT will make the difference? They can all pay it back real fast if the bank needs a shit ton tonight?
If everything is in the middle of failing, I don't want to take the debt someone else owes you and call it an asset. But that's just me.
I am sure they have no exposure to anything going on in in the PIGGS, right? They have lots of cash to pay out when epic defaults start happening, right?
Go ahead and nit pick. This is missing that the forrest is burning because you have your attention on some leaves that are still green.
Whoa!
Hey babe. I look for you. Been sober since mother's day. ;-) No commitment beyond making it to father's day!