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Rosenberg Defines European Insanity

Tyler Durden's picture





 

The situation in Europe goes from bad to worse. Gluskin Sheff's David Rosenberg is back to his bearish roots as he remind us that 'throwing more debt after bad debts ends up meaning more debt'. As he notes, the definition of insanity is (via Bloomberg TV):

When you realize that of the potential $100 billion to spend, 22% of that has to be provided by Italy and their lending to Spain is at 3% but Italy has to borrow at 6%. They have to lend to Spain $22bn at 3% - it is just madness. Everybody is getting worried again. The solution that they seem to have come up with seems to be worse than the problem in the first place.

As we have pointed out vociferously over the past few days, even though the assistance is being earmarked for the banks, the Spanish government assumes the responsibility and so this once 'low national debt' sovereign is following in Ireland's footsteps as its debt/GDP takes a 10pt jump to 89% (based on the government's data) and much higher in reality (when guarantees and contingencies are accounted for). As Rosie explains succinctly, this is right at the Reinhart-Rogoff limit of 90% at which debt begins to erode the nation's economic fabric.

It is probably not long before this credit - two notches away from junk and having to raise money at 6.75% when its economy is contracting at nearly a 2% annual rate - is going to require external assistance as it follows Ireland onto the sidelines.

The situation in Europe indeed goes from bad to worse.

 


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Tue, 06/12/2012 - 14:33 | Link to Comment vmromk
vmromk's picture

Nothing that a few well placed swaps couldn't fix.

BTW......FUCK YOU Bernanke.

Tue, 06/12/2012 - 14:46 | Link to Comment ACP
ACP's picture

Madness?

THIS......IS......PONZI BITCHEZ!

Tue, 06/12/2012 - 14:49 | Link to Comment Doña K
Doña K's picture

Watch that UK Ponzi explode/implode after the Olympic games.

Tue, 06/12/2012 - 15:01 | Link to Comment Manthong
Manthong's picture

But the situation will improve by next month, wont it?

Tue, 06/12/2012 - 15:21 | Link to Comment economics9698
economics9698's picture

Print mother fuckers print.

Tue, 06/12/2012 - 15:24 | Link to Comment Pladizow
Pladizow's picture

Borrow at 6%, lend at 3% - makes complete sense in the banking world of fiat paper!

Tue, 06/12/2012 - 15:27 | Link to Comment Sudden Debt
Sudden Debt's picture

IT SURE DOES!

I wonder how you explain that to a six year old who's getting it's first math lesson...

Tue, 06/12/2012 - 15:42 | Link to Comment Pladizow
Pladizow's picture

Easy, you explain to the six year old, that the banks are lying, cheating, thieves!

Tue, 06/12/2012 - 16:25 | Link to Comment malikai
malikai's picture

Is this the dip we've all been waiting to buy?

Tue, 06/12/2012 - 18:25 | Link to Comment Cadavre
Cadavre's picture

betting most still waiting for FB to strike above 42$ per share to get to re accumulate their grub stake - margin calls must have been a real bitch ... BUT: that con was beautiful - CNBC should, at least, win A Golden Goebels this year at the Annual Fascist Ball  for their part in that beautifully run pig in a poke. Never ever seen an IPO that included underwriters (who, BTW, probably already owned most of the FB shares at 3.20$/per - or less evun!) publish their buy "low water mark (thinking it 38 bucks).

And how `bout that underwriter (was it Milken wearing a Doug Fugly toupee?) who was hanging at the Zuck's commemorative NASDQ bell ring that fateful morning!! One thing happened for sure - they set a brilliant new and audacious benchmark for running a high stake fast money ponzi. It was totally beautiful.

Tue, 06/12/2012 - 15:40 | Link to Comment Citxmech
Citxmech's picture

This sounds like one of those jokes where the punchline is:  "volume."

Tue, 06/12/2012 - 16:16 | Link to Comment ACP
ACP's picture

Exactly:

"What we don't lose in margin we lose in volume!"

Tue, 06/12/2012 - 15:33 | Link to Comment Cupid Stunt
Cupid Stunt's picture

BoE still has a little dry powder left to keep it going well after the Olympfest.

Tue, 06/12/2012 - 17:48 | Link to Comment Cadavre
Cadavre's picture

Don't know if-en he be the same dude - but went to school with a guy named Daviid Rosenberg in Hawaii. Freckles, bad teeth, but he always wore Bass Weejuns (depending on his outfit wore black, brown or burgundy Weejuns) , Gant shirts (with the little loop in the back - had to have that), Adler socks that matched his Gant shirts), color coordinated pants (although it was difficult to find the brand names that suited his taste - no Pincus Brother Clothiers on the Islands) and when he screwed up in public his dad would beat the sh*t out of him. One time it was so bad (David screamed like a girl) someone called the cops. David never went to the beach and was the only boy in PE that wasn't barefooted (it rained a lot - most girls wore fake sole less shoes that were little more than a piece of cloth covering the top of the feets from big toe to ankle). At PE when we played "Hawaiian Style" "touch" foot ball (meaning every player could pass or receive the ball and was tackled instead of "touched"). He showered in the girls locker room - and cheated at "match stick poker" and never ever owned a surfboard or went to the beach , BUT, he did have some humongous zits despite the 30 pounds of clearisel per week therapy (ya just wanted to reach out and pop them suckas when you saw them - the sun and salt at the beach left most of us pretty much zit free).

Enough about David EXCEPT , he should bring his analysis home - he should "onshore" his tripe for a while.

The US sells debt to China (or anybody else dumb nuff to buy it) at 3.30%. AND F*CKING LOANS IT TO INSTITUTIONS AT BELOW COST!

Perhaps the spread in the US cost to borrow and price to offer ain't as wide as the Italy Spain fandango, BUT IS IT STILL BE A F*CKING MONUMENTALLY INSANE  WAY TO RUN A PONZI when you consider the shear amount of debt weighing down the US economy. In fact Italy, Spain, the PIIGS and the entire EZ , all have better debt (correction - at least a much lower principal burden) to GDP (GDP turns a 100$ purchase into a 1000$ GDP - that's f*cking insane too!)

CNBC gave viewers a few minutes of sobriety today as the three paisanos (Pento, Pisani and Santelli) tore apart another one of the Gleiberman's drunker zero brained "i suck FED dick" tirades a new asshole (again) , regarding the Spain Italy SNLesque debt comedy of horrors. Italy has 2,700 tons of gold. The jest of the discussion put forth by Santelli was that Italy should issued gold backed bonds (don't know enough to weigh in on that one way or another).

Santelli suggested also that being a politician should be like jury duty - you do it - then you et out - most with a pair that can still land a turd in the pot when they take a shit probably agree.

The problem with the EZ is the same as the US - the are governed by Goldman alumni - shutdown Goldman's and humans might get their world back!

Your verbotten Ministry of the Fatherland Insecurity content flag word for today is:
2600

(You going WTF `bout 2600 ... urs true too .. mean what the f*ck is so threatening about that - unless it be the address of Bins Tora Bora Cave - or his old phone extension at ALCIADA's Langley Branch Office)

Tue, 06/12/2012 - 21:09 | Link to Comment Buck Johnson
Buck Johnson's picture

Yep, thats exactly right it will.  They don't want it to happen before the olympics so they wait until after and then the nasty austerity and such that will be put on people.

Tue, 06/12/2012 - 14:57 | Link to Comment TrumpXVI
TrumpXVI's picture

Exakatickly, these guys are soooo negative!

Tue, 06/12/2012 - 15:29 | Link to Comment AlaricBalth
AlaricBalth's picture

As of today the Fed has $23 billion in outstanding swaps with the ECB. The ECB then turns around and lends this to their troubled banks to give them the appearance of solvency. In essence, the Fed is helping to bail out Europe while debasing the USD. It is time for a full audit of the Federal Reserve.

http://www.ecb.int/mopo/implement/omo/html/index.en.html

http://www.newyorkfed.org/markets/fxswap/fxswap_recent.cfm

If the Fed has done nothing illicit, then they have nothing to hide. (Borrowed that from the Dept. of Homeland Security. The pendulum should swing both ways. )

Wed, 06/13/2012 - 06:19 | Link to Comment Cadavre
Cadavre's picture

Exactly - problem is don't think the ECB can print. If the EURs are used to re capitalize banks who sold sovereign debt to bond holders that insured those bonds with CDS purchased from ISDA members, then there seems the demand for USDs would be diminished cause there are fewer EURs available for USD devaluation (right?). Meaning stagflation or deflation - gold up when the markets down - never imagined those trends would print so soon,

The question is: Where and who  "Bend Over" Ben go (down) and do next for an excuse to counterfeit? Who else can he swap USD for EUR with? Are there even enough EURs out there to load Ben's spoon for a righteous fix? Is there enough excess EUR capacity for the swaps?

Tue, 06/12/2012 - 15:22 | Link to Comment battle axe
battle axe's picture

First the ARMADA then this, oh the pain.....

Tue, 06/12/2012 - 14:32 | Link to Comment slow_roast
slow_roast's picture

Classic. 

Tue, 06/12/2012 - 15:11 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

*

Tue, 06/12/2012 - 14:33 | Link to Comment Dr. Engali
Dr. Engali's picture

SHHHHH...don't tell the market.

Tue, 06/12/2012 - 14:33 | Link to Comment the 300000000th...
the 300000000th percent's picture

"everybody is getting worried again" WTF, they should have been way too worried a while ago 

Tue, 06/12/2012 - 14:49 | Link to Comment flying dutchmen
flying dutchmen's picture

Worried --- they people that are worried are the ones that have been milking the systems for years.. When in reality they have added no fucking value what so ever.   People in Financials are overpaid fuck tards.. Not everyone of course--- and of course the whole goverment entitlement BS...  more people who drain wealth but feel like they derserve a golden pension that is double that of private industry..

Tue, 06/12/2012 - 15:29 | Link to Comment Sudden Debt
Sudden Debt's picture

Worried?

IF THEY WHERE WORRIED THEY WOULD BE BUYING SILVER BY THE BUSLOADS!!!

Tue, 06/12/2012 - 14:33 | Link to Comment slaughterer
slaughterer's picture

Nice to see Rosie recover from his "light at the end of the tunnel" fantasies.  Now we will probably have a face-ripping rally in European markets to spite his analysis.  

Tue, 06/12/2012 - 14:38 | Link to Comment Deep79
Deep79's picture

Ya probably will. this guy is like Dennis Gartman now, swithces on a dime. I remember when we were approaching 1400 on sp in april he went bullish.

It's a shame, his analysis is very good, his market calls probaly one of the worst ever.

Tue, 06/12/2012 - 14:43 | Link to Comment ZerOhead
ZerOhead's picture

Face-ripping still beats the new American fetish of face-eating if you ask me...

 

Tue, 06/12/2012 - 14:44 | Link to Comment Zero Govt
Zero Govt's picture

Govt has been eating our faces for centuries

Rosey is an economist, but he's never worked that one out 

Tue, 06/12/2012 - 14:42 | Link to Comment francis_sawyer
francis_sawyer's picture

I tried to tell him yesterday that it was an oncoming train...

Tue, 06/12/2012 - 14:34 | Link to Comment the 300000000th...
the 300000000th percent's picture

And because of all this full retard activity its going to go from worse to beyond belief

Tue, 06/12/2012 - 14:42 | Link to Comment ZerOhead
ZerOhead's picture

The dial has only been set to quarter-tard so far... you ain't seen n-n-n-nothing yet!

Tue, 06/12/2012 - 14:35 | Link to Comment asteroids
asteroids's picture

You go broke "a little bit at a time, then all of a sudden." Europe is following the Steve Jobs philosophy of "wishful thnking" and other bullshit when he first got cancer. He's dead now. Europe is following suit.

Tue, 06/12/2012 - 14:43 | Link to Comment the 300000000th...
the 300000000th percent's picture

I agree, fuck Steve jobs

Tue, 06/12/2012 - 15:39 | Link to Comment Sudden Debt
Sudden Debt's picture

That would be called NECROFILIA...
I'm pretty sure there's a law against it...

Tue, 06/12/2012 - 14:35 | Link to Comment Joe A
Joe A's picture

Yes, but Germany borrows at 0%.

Tue, 06/12/2012 - 14:41 | Link to Comment Non Passaran
Non Passaran's picture

Until it doesn't, it does

Tue, 06/12/2012 - 14:44 | Link to Comment Rich V
Rich V's picture

The Swiss borrow at -0.6% they could make $$$

Tue, 06/12/2012 - 15:32 | Link to Comment Sudden Debt
Sudden Debt's picture

Imagine....

You buy a house and take out a loan of 400k
...
You don't downpay shit....
...
And every month the banks gives you 400$ because you took out a loan...
...
You want a car? Take a loan!
AND THE BANK PAYS FOR YOUR GAS!!!!

Only in the land of Oz....

Tue, 06/12/2012 - 15:43 | Link to Comment Citxmech
Citxmech's picture

I'd like to lock-in that homeloan for 30 years!

JFC

Tue, 06/12/2012 - 15:46 | Link to Comment FreedomGuy
FreedomGuy's picture

Germany, Italy and all other governments do not borrow, per se. The debt accrues to the citizens. Per the article, if I am a thinking citizen in Italy and someone just told me I have to borrow at 6% to give it to Spain at 3% I would be livid. Italy is as crippled as Spain. Germany is giving and pledging its citizens' money to everyone in Europe.

I argue that if you cannot control your money, which is to say your productivity then you really do not control your life. You are in fact a serf or economic slave. When your/our governments give away all our labor and money to anyone they wish after a meeting of "ministers" oiled with expensive bourbons, then you cannot argue you have much say in your own future.

All collectivists welfare states will fail. It is just a matter of how long and how much it will cost.

Tue, 06/12/2012 - 15:49 | Link to Comment FreedomGuy
FreedomGuy's picture

Germany, Italy and all other governments do not borrow, per se. The debt accrues to the citizens. Per the article, if I am a thinking citizen in Italy and someone just told me I have to borrow at 6% to give it to Spain at 3% I would be livid. Italy is as crippled as Spain. Germany is giving and pledging its citizens' money to everyone in Europe.

I argue that if you cannot control your money, which is to say your productivity then you really do not control your life. You are in fact a serf or economic slave. When your/our governments give away all our labor and money to anyone they wish after a meeting of "ministers" oiled with expensive bourbons, then you cannot argue you have much say in your own future.

All collectivists welfare states will fail. It is just a matter of how long and how much it will cost.

Tue, 06/12/2012 - 14:36 | Link to Comment carbonmutant
carbonmutant's picture

If Debt can be used as money, more is better... right?

Hold on a minute I need another hit...

Tue, 06/12/2012 - 14:54 | Link to Comment CCanuck
CCanuck's picture

Puff, puff, Pass...BITCHEZ!

Tue, 06/12/2012 - 16:32 | Link to Comment Satan
Satan's picture

Down the left hand side buddy...

Tue, 06/12/2012 - 14:37 | Link to Comment spastic_colon
spastic_colon's picture

I wish everyone would please stop using the word "government" and use the more accurate "taxpayer" since they are the same thing...."government" makes stories sound like someone else is paying the tab.

Tue, 06/12/2012 - 16:17 | Link to Comment AlaricBalth
AlaricBalth's picture

I agree. And while they're at it, I wish they would stop saying "national security" when they really mean "government security".
As in, " We are deploying predator drones domestically for government security. "

Tue, 06/12/2012 - 14:38 | Link to Comment It is a bargin ...
It is a bargin my friend's picture

Watch the Poles and Russians going toe to toe today ..thats Europe for you, great innit

Tue, 06/12/2012 - 14:51 | Link to Comment Joe A
Joe A's picture

Watch Obama "droning" whole villages to pieces in Afghanistan. That's America for you, great init. NOT.

Tue, 06/12/2012 - 14:39 | Link to Comment Zero Govt
Zero Govt's picture

"Gluskin Sheff's David Rosenberg is back to his bearish roots as he remind us that 'throwing more debt after bad debts ends up meaning more debt'."

Not many economists know that

Well done Rosey, you're holding up your entire delapidated profession by a thin thread called basic maths ...not many of your profession can do that, just ask Paul Krugman

Tue, 06/12/2012 - 14:47 | Link to Comment bdc63
bdc63's picture

... or Liesman.  But I'm not sure you can really count him since he's just a paid propaganda mouthpiece of the FED ... you'ld think with all the money they have they could afford better ..

Tue, 06/12/2012 - 14:39 | Link to Comment Albnyc
Albnyc's picture

Nobody expected a Spanish disquisition.

Tue, 06/12/2012 - 14:40 | Link to Comment TonyCoitus
TonyCoitus's picture

I love ZH.  No where, and I mean nowhere can you get this type of information so desperetly needed to help educate the sheeple of the world.  Myself included.  baaahh  baaahhh.  Keep up the good fight!

Tue, 06/12/2012 - 14:39 | Link to Comment uhb
uhb's picture

So What?

Debt that cant be paid, wont be paid. Its that simple.

Tue, 06/12/2012 - 14:45 | Link to Comment Clashfan
Clashfan's picture

A bit off topic here, but "insanity" is part of the topic/headline.

My wife just got accosted by someone apparently on the bath salts. I thought you folks would be interested.

We live in rural suburbia, so this seems odd. Or maybe not? She was turning off of the highway onto our usual side street and, immediately after she turned, she saw a man walking toward her car on her side of the road. He then stepped out in front of the car, and she could see that he was brandishing a sickle and waving it around. No shit. He had jeans but no shirt and was sweating profusely. He stood squarely in front of her car, screaming "Hit me, bitch!".

She miraculously managed to get around him into the other lane as he shouted at her through the passenger side window.

When she looked into her rear view mirror as she sped away, she could see that he was going after the cars that had been turning behind her.

As she got about a mile down the road, two cops sped past in the other direction (toward the incident) with their lights on.

I mean, a sickle. Freaking zombie grim reaper shit.

I am thankful to the Father in Heaven that she made it home from the bank.

Insanity is catching.

Tue, 06/12/2012 - 14:49 | Link to Comment Muppet Pimp
Muppet Pimp's picture

This seems to be happening more and more often around my area also.  They arrested a man last night behind the diner who was eating a stray cat.  Very strange indeed.

Tue, 06/12/2012 - 14:52 | Link to Comment Clashfan
Clashfan's picture

I'm beginning to wonder how much goverment psy-ops might (MIGHT) be involved in the whole "bath salts" thing. I mean, imagine if they could somehow slip this substance into something like an NRA march or even an OWS protest? I mean, if they want to get people to cry for martial law? I mean, come on, the dude was stopping traffic with a sickle, screaming at cars. I wonder if the cops had to drop him when they got there. I wonder if he hurt anyone. I wonder if it will even be on the news.

Tue, 06/12/2012 - 14:55 | Link to Comment magpie
magpie's picture

Or maybe the flouride budget has already run out.

Tue, 06/12/2012 - 16:19 | Link to Comment lakecity55
lakecity55's picture

Do NOT count that out.

However, since financial Depression is hitting druggies, too, there is a search on for cheaper ways to get high.

I sense a more evil element as well, but that is subjective.

It IS more dangerous out there, and it will get worse.

In addition to "Keep Stackin'"

We should also say "Keep Packin."

Tue, 06/12/2012 - 15:00 | Link to Comment CommunityStandard
CommunityStandard's picture

As unemployment rises, wages are depressed, and entitlements are cut, we'll start to see it more and more.  It's easier to get high than struggle.

Tue, 06/12/2012 - 15:14 | Link to Comment junkyardjack
junkyardjack's picture

There are a growing number of articles about people that do hiking trips through Central Park to teach people what plants are edible, obviously the city is very upset about this.  Also note the increase in the number of swans with arrows stuck through their necks, its not from some badass teenager, its someone looking for dinner...

Tue, 06/12/2012 - 14:50 | Link to Comment Tinky
Tinky's picture

Good to hear that she's safe; sorry that you're still using a bank.

Tue, 06/12/2012 - 14:52 | Link to Comment Clashfan
Clashfan's picture

I have the option of using a credit union b/c of my job, but it's just too far away. The bank is about eight miles as it is. We don't keep much money in there, trust me.

Tue, 06/12/2012 - 14:59 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Joe Strummer Rules! (or Ruled I guess)

Tue, 06/12/2012 - 14:52 | Link to Comment adr
adr's picture

When faced with the loss of everything many people become insane.

There is a thin line between anger and insanity.

In the next year the murder rate is going to skyrocket. You'll also start seeing stories of roaming cannibals in South Side Chicago and Detroit. The gangs are out of control and they will start eating rival gangs for initiation rites.

Tue, 06/12/2012 - 15:16 | Link to Comment junkyardjack
junkyardjack's picture

I was wondering where Biden was...

Tue, 06/12/2012 - 15:39 | Link to Comment DOT
DOT's picture

BAth Salts the BreAKfast of BankSTErs !

 

Get your gal to start packing.

Tue, 06/12/2012 - 16:00 | Link to Comment Clashfan
Clashfan's picture

DOT, that option is being discussed, trust me.

Tue, 06/12/2012 - 16:43 | Link to Comment Westcoastliberal
Westcoastliberal's picture

A pair of Human lungs were found laying on a sidewalk in Los Angeles yesterday.  For real.

http://losangeles.cbslocal.com/2012/06/11/possible-pair-of-lungs-found-o...

Tue, 06/12/2012 - 14:46 | Link to Comment Frank N. Beans
Frank N. Beans's picture

"full retard"

 

greatest phrase of this century

Tue, 06/12/2012 - 14:48 | Link to Comment adr
adr's picture

Don't worry the PPT will always be there to bail the market out.

The Fed must be buying up oil contracts or something. I'm sure a demand model can be made to take crude from $82 to $87 and then back to $82 and back to $85 in a span of four days, right?

I'm lovin the $.34 increase in the price of gas monday afternoon. Still $3.79 today based on absolutely nothing. $3.45 at 3pm on monday, $3.79 at 6 pm.

 

Stocks up today, down tomorrow, or down today up tomorrow. Debt doesn't matter today, debt matters tomorrow.

Since debt is wealth, then shouldn't i be able to go borrow $100k using my $120k mortgage as collateral?

All you can do is say fuck it all.

Tue, 06/12/2012 - 14:52 | Link to Comment Hedgetard55
Hedgetard55's picture

Actually its $125 billion, Rosie, as the Euro and dollar are not yet at parity. Some "economist".

Tue, 06/12/2012 - 14:52 | Link to Comment zippy_uk
zippy_uk's picture

None of this "Anglo-Saxon capitalism" for the morally superior Europeans - "Vive La Social model for ever!!!!!"

Tue, 06/12/2012 - 14:52 | Link to Comment whisperin
whisperin's picture

The shit will really hit the fan if some institution stops accepting Euro's for payment. On one hand all the participants are supposed to be the same but clearly they are not. So is the value of a German Euro more than that of say one in Spain. The screens say one thing but the eurocrat want's eveyone to believe another. Stop accepting Euro's and force the issue.

Tue, 06/12/2012 - 14:57 | Link to Comment Muppet Pimp
Muppet Pimp's picture

'Hard Currency Arbitrage' coming next where the actual bills printed in Germany are wroth more than the face value, but notes printed in the periphary worse less than face value. Come to think of it, there were long bank lines in zurich last week, as people presumably sought to exchange their less valuable SE Euro's for the German printed ones.

Tue, 06/12/2012 - 14:54 | Link to Comment Hal n back
Hal n back's picture

maybe not as insane as Spain being required to contribute to a bailout pool for themselves.

 

This may end up being the greatest ponzi scheme of all time--concocted by the leaders that got us here in the first place

Tue, 06/12/2012 - 14:56 | Link to Comment JuicedGamma
JuicedGamma's picture

Spriraling out of control, someone needs to pull throtle and jam left rudder, but unfortunately the Europeans seem to have missed the class on spin abatement.  Shame.

 

Tue, 06/12/2012 - 14:55 | Link to Comment Fail2Deliver
Fail2Deliver's picture

They will make up the difference by lending in volume...very smart and obviously bullish

Tue, 06/12/2012 - 14:55 | Link to Comment Richard Head
Richard Head's picture

Italy will make it up in volume.

Tue, 06/12/2012 - 14:55 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Perhaps the banks want to erode the economic fabric of nations as a prelude to power grabs.

Tue, 06/12/2012 - 15:15 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

The busines model hasn't changed since the Medici invented it.

Tue, 06/12/2012 - 14:59 | Link to Comment tomAsss
tomAsss's picture

dont worry

we are doomed...but someoene will bailout us eventualy ...for sure :)

ESFFSNFSS fund they goat a money ..just printed

 

Tue, 06/12/2012 - 15:01 | Link to Comment TNTARG
TNTARG's picture

"Crónica de una muerte anunciada". Latin America's magic realism seems to have spread worldwide. Let's everybody know Santiago Nasar is still known to be dead from the beginning to the end.

Tue, 06/12/2012 - 15:07 | Link to Comment magpie
magpie's picture

Shouldn't Davila's aphorisms be more apt in these circumstances. 

Tue, 06/12/2012 - 15:02 | Link to Comment Nawaralsaadi
Nawaralsaadi's picture

"When you realize that of the potential $100 billion to spend, 22% of that has to be provided by Italy and their lending to Spain is at 3% but Italy has to borrow at 6%."

There seems to be an error there, Italy is not borrowing for the EFSF at 6%; the EFSF bonds or ESM bonds are jointly issued at lower than 6%, this puts pressure on Italy own debt issuance for sure, but it is a mistake to say that Italy is borrowing at %6 to lend at %3 or perhaps it is a deliberate error to mislead.

Tue, 06/12/2012 - 15:09 | Link to Comment 20-20 Hindsight
20-20 Hindsight's picture

From bad to worse, yet the fucking markets are soaring again today.  You just can't kill the beast!

Tue, 06/12/2012 - 15:24 | Link to Comment semperfi
semperfi's picture

The Boyz are very good at hiding all the money they print !!!

Tue, 06/12/2012 - 15:45 | Link to Comment RiverRoad
RiverRoad's picture

Who was it who said, "Money is the root of all evil.....evil....evil....?"  Somebody fix that record, please.

Tue, 06/12/2012 - 15:11 | Link to Comment junkyardjack
junkyardjack's picture

Interest rates only matter when you plan on paying it back, sort of like most American's credit cards.  Bullish!

Tue, 06/12/2012 - 15:23 | Link to Comment Nobody For President
Nobody For President's picture

And the bailout seemed like such a good idea on Saturday...

Tue, 06/12/2012 - 15:35 | Link to Comment Sudden Debt
Sudden Debt's picture

ON OUR OWN TERMS!!!
NO STRINGS ATTACHED!

Weef bfeeth zee Germanzzz!!!! Ol?!!!

Reminds me of the bookshop where you sign a piece of paper and you get a free book....

Weeks later...
They ship you a library the size of the national Library!!!!
And bill you the next day for a Gazillion!

Tue, 06/12/2012 - 15:24 | Link to Comment the 300000000th...
the 300000000th percent's picture

What fucking retard juice is everyone drinking today that is pushing stocks up??????

Tue, 06/12/2012 - 15:55 | Link to Comment RiverRoad
RiverRoad's picture

Maybe the coming collapse will be bullish???

Tue, 06/12/2012 - 15:32 | Link to Comment Calidreaming
Calidreaming's picture

the Crack smoking continues   .  One day -soon- this pig is going to collapse at the close.

Tue, 06/12/2012 - 15:34 | Link to Comment the 300000000th...
the 300000000th percent's picture

low volume stocks day, ah thats why

Tue, 06/12/2012 - 15:38 | Link to Comment ziggy59
ziggy59's picture

The math works..
(-)X(-)= (+)

The world should be surplusing very soon..

Tue, 06/12/2012 - 15:38 | Link to Comment slaughterer
slaughterer's picture

Let's all go 300% long.   Greek vote will unexpectedly be bullish, won't it?

Tue, 06/12/2012 - 15:39 | Link to Comment the 300000000th...
the 300000000th percent's picture

ah yes the 2 wrongs make a right equation

Tue, 06/12/2012 - 16:09 | Link to Comment DOT
DOT's picture

Ahhhh....surplusing; just can't get enough.

Tue, 06/12/2012 - 16:21 | Link to Comment owurkan
owurkan's picture

The chief cause of problems is solutions

Tue, 06/12/2012 - 16:42 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

It is unpossible, BUT I GET IT.....I GET IT.

Youre screwed if youre long or short. Bonds, stocks, you name it you are screwed.

 

If youre long, you are at the mercy of false rumors and idle threats, much akin to "if I have to stop this car!" type shit that DOES NOT WORK. I know first hand.So if youre long you get whipsawed down and down until the tail starts to go and then the PPT has to buy like crazy to stabilize the market.

 

At some point the PPT becomes flush with stocks. They call the Fed and the Fed chooses who will throw out the 10-15 word soundbite that will mention easing and BAM! the market is up 2% with a healthy squeeze courtesy of the shorts.The PPT unloads all the shit they backstopped and prepares for the next round.

 

All a Fed member has to do is fart up wind and the market zooms up 2% minimum. You cant tell me thousands don't know when they will throw in the obligitory "easing" rumors in some bullshit speech to save the market for the day.

 

If youre short, youre right but playing on a most uneven playing field. You will get squeezed during these periods, as I call them 'death rattle periods' where you are dying yet you are going through hell in the meantime and dragging your family/friends with you. Brutal for everyone.Easier to just get it done and move on instead of the endless slow-motion spiral down to reality.

 

 

'UNPOSSIBLE'

Ralph Wigam would agree this 'market' is unpossible....in every way shape and form. You can just smell, taste and sense the desperation. How many times will these bullshit soundbites work?

Just to produce a short squeeze. We all know a big Reset is not a matter of if but when...I say we shit and get off the pot!

 

It's a downward never-ending spiral towards reality with vicious rallies along the way...EXACTLY what you get in bear markets....

 

Fake as a Brittany Spears concert....

Tue, 06/12/2012 - 21:03 | Link to Comment Shakes
Shakes's picture

I pay off my mortgage with my credit card...Is that a problem?

Tue, 06/12/2012 - 21:04 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

the assistance is being earmarked for banks

why? 

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