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Sarkozy: Europe's "Liquidity Run" Has Begun Because There Is An Unsolvable $30 Trillion Problem
No, not that Sarkozy. His half-brother - the one who actually can use a calculator. In an interview on CNBC, the Carlyle group head had the temerity to tell the truth, the whole truth, and use math - that long-forgotten concept which one has to scour various backwater blogs to rediscover - to explain nothing but the truth which is that Europe needs many more trillions than either the EFSF or the ECB can afford to give. Actually, we take that back. The ECB can inject the needed €3-5 trillion, but after that concerns about localized episodes of (hyper)inflation, especially now that Kocherlakota has confirmed that the transmission mechanism between bank reserves and inflation may be broken, will be all too justified. In the meantime, Sarkozy on Europe math fail: "The math i'm working with is very simple. In the US banking sector, we had 3 trillion of wholesale funding that needed to be stabilized, got stabilized by the implementation of TARP which saw the US treasury buy $212 billion worth of preferred in the banking sector to stabilize that $3 trillion, give our banks the time to work through hair problem their problem assets. In Europe, that $3 trillion is $30 trillion. so if you multiply the $212 by 10, you get the $2.12 trillion. In my view, the issues on the European banks are bigger than the issues on the books of the US Banks. So if you want to stabilize that $30 trillion and in my view it's not that you want to, it's that you have to, you do not have a choice, you're going to have to be at least at 2.1 trillion and i suspect it may need to be more." Q.E.D. - there, the math wasn't that difficult, was it?
And for his other clips from the morning click here and here.
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EFSF should invest in Groupon
BUY LOW
BITCHEZ!
Sarkozy on Europe math fail: "The math i'm working with is very simple . . . if you multiply the $212 by 10, you get the $2.12 trillion."
Doomed.
. . . give our banks the time to work through hair problem . . .
Is he talking about Blankfein now?
2 + 2 = FUCKED
There, I think I have the math right.
Will that last person to leave please turn out the lights.....
And that is real capital not bond purchases! Huge difference. Too bad sarkozy's aren't American - thanksgiving dinner would be a blast there
To me, the real news burined in the big news is this:
Retailers experienced their first sales decline in over 3 weeks as sales dipped by 0.9 percent for the week ending Nov 19 according to ICSC
The consumer "Miracle" sure as hell should not be dying in November....OMG Robo!
Nope, the math usually never is. It's just idiot politicians and eCONomists don't understand the fabric of the universe. The simple equation that governs this mess is f(x)=e^x, with continuous compounding.
I would say "e" is constant and I prefer you would use "z" or "y" (or whatever) which are variable.
Dude, really? Are you a politician or economist?
None, realist
All together now, World:
"Lever, Print! Lever, Print! Lever, Print!"
A small price to pay to keep billionaires wealthy and executive bonuses flowing.
Indeed! That really has been what the last 4 years of extend and pretend bailout mania has been about hasn't it. Keep the bonus pools full.
They blow up the world economy, get bailed out, carry on the same crap until she blows again, and guess what? They will be lining up for another bailout.
Friggen pigs. OWS is underarmed for the job at hand. Wait till the hungry ragged vets and red necks finally snap and understand who is rich and who is poor and why. Hell, it is Wall-Street's own fault if people lynch them. They had a good thing going, they were getting rich and doing well and people supported the system. So what do they do? They get so fuck'n Greedy they blow up the world. They deserve what they are going to get.
Indeed! That really has been what the last 4 years of extend and pretend bailout mania has been about hasn't it. Keep the bonus pools full.
How bout just calling it "Gilding the Golden Parachute"??
I think they all new they'd be either bugging out or getitng kicked out soone enough.
200,000 jobs lost so far in global financial sector. Chump change
Bloody Hell! This sucker REALLY is going down isn't it?
ECB you better start printing and be quick smart about it!
Printing? That is what the Fed is for. Just ask the IMF.
Indeed! The IMF is one source Europe is looking to for rescue. Again the USA taxpayer gets the shaft.
Not one source, the main source. If the dollar goes higher it will kill equities and take pensions with it. Then the US housing market will tank further than anyone can imagine because everyone is reliant on corporations to save them from this chaos, hence why the US bailed out corporations back in '08-'09.
So if the US prints, and gives it to the IMF, then the dollar can find a lower range, spurring US equity, Europe gets its bailout, and the IMF owns everyone. Fucking perfect plan from the Illuminatted ones!
The barn in the background, is that where Oliver keeps his coffin?
I believe that may be where they film those Euro-pornos - oh, don't act like you don't know what I'm talking about. You saw it. You know you did.
I'm not a CNBC or Ross Sorkin fan, but the stuff from Sarkozy was awesome,
Thanks Tyler
Oliver is inner elite Illuminatti, and he is saying stuff we all know, Best Buy excluded.
30 trillion? I thought the derivatives market was more like 600 trillion.
Yes, they're trying to break it to us slowly
He is using fractional reserve metric. You all need to get off his dick. It is simple 101 stuff.
See the most recent quarterly BIS review (table -- Global OTC derivatives market, end-December 201)
http://tiny.cc/kva4j
If we continue to allow these stools to set the meme, the 200 to 600T non money in fantasy products will always be 30T. 2.1T is going to fix what again? Oh yeah, Weimar
Anyone holding their FAZ positions through thanksgiving?
Am I the only one here having flashbacks of Billy Carter?
Thirty trillion and what do you get another day older and deeper in debt...
Thank you Sarkozy; for confirming th depth of the banking ponzi in Eurozone. I had it at 50 T but then I was being bearish. The 30T asset base, all debt, is thus sloshing around and will bring down the pension funds of the euro zone, if it blows up. Now we know why nobody wants a bank run. Whats 8-10 T sovereign debt in comparison... As the guy says there as three problems, all interlinked, but the donkeykong is the banking debt...How many years of ++ growth does that need to write off, even assuming growth can be found by stacking up 2.5 T in some stinking bale, bail-out facility, that all and sundry and their grandchildren contribute to?
Twenty years of GDP growth to wipe out that debt, but how do you generate growth in a costly energy environment to do that with a fiat money that devaluates faster than you can print?
Sounds like somebody has to talk about debt jubilee pretty fast; and somebody else has to pull in their stashed cash pile back into the system, all 25 T parked in Offshore places. Oligarchs will go broke, the people already are...Pronto before the whole thing goes up in smoke. Imagine being king of the WS heap one day and king of toilet paper the next. King Lear on heath, or King Richard at Horseless battlefield.
what a joke. proof that a proper education and contacts gets one a fancy income, license to lie, and permission to destroy economies. This moron is a Swiss bank M&A guy that, in th past decade, worked to create US TBTF and recap the likes of Sallie Me. if he were so smart, I guess he was right on top of these "numbers" back in 2003-2007, his merger advise actually "added value," and B of A shares are now SOARING. Please get some creds Sarkozy and CNBC.
Sarkozy is a real smart guy!
i love the shiny bitch in my safe
Had to stop watching as soon as Byron Wien came on...
sarkozy has a 1/2 brother at caryle. ugh
$30T sounds pretty bad! It's a good thing our author extrapolated only using TARP and ignored the Fed balance sheet, GRE's and other government guarantees of mortgage-related assets that are already bad, but not counted yet because they're still Marked 2 Myth.
A thing like that might suggest a need for $1Z in Europe.
"forgotten concept" "backwater blogs" I resemble that remark. See you at fight club.
http://www.youtube.com/watch?v=6zkZ3f8DnKs
And again .... THE ENTIRE BANK DEBT OF THE WORLD IS
31.9 TRILLION USD
How come EUROPE has to " stabilize " that ?
Do You MATH ..brothers !
Europe has a NET Capital Position towards the remaining world of 10 TRILLION USD and the US BANKS owe European banks 2.3 TRILLION USD ...NET ( not to mention the TRILLIONS of USA TREASURIES owed by a multitude of Europeans States and Institutions.. UNFORTUNATELY ! )
Do Your MATH ..brothers !
NO... reading through the pages of ZEROHEDGE and studying the editorial line for some time now i become increasingly convinced ZeroHedge is UNRELIABLE and has a personal AGENDA !
the sarkozy brotha from anotha motha. who knew? not me. and a smart motha of a brotha too. too cool.
Prism: Frames of Reference
When the model no longer functions, it’s time to build another one, and, depending upon your position on the timeline, it’s probably already done, by the leading event horizon, which is why the lagging horizons make false assumptions about the provision, and why they compete for pie without once making pie, until there is no pie.
The legacy system makes pie once, sees the ensuing sh**-show, and employs government agency to capture the return coming out of the new leading horizon, until the latter “disappears” again. The intermediaries, having never made pie, naturally accept the “reality” of government as presented. Who is going to turn down free, except the leading event horizon, which is distilled in the process, with Family Law?
Have you ever wondered why a woman repeatedly hooks up with an abuser or a man with a bimbo (to employ stupid-simple stereotypes)? The former(s) actually create the latter(s), due to the self-fulfilling bias of the prophesy/voices in their head. From aliens, they grow up inured to the model, a bubble in their head, seeing only that which they were told to see, replication. Bullies beget bullies, whether they are physical or passive-aggressive. Follow the path of bullies if you want to map the black hole.
From the perspective of the electron, it is the proton that is excited (not that either really exists). Not only is energy neither created nor destroyed, but it is also an allusion. There is only separation into charge, through refraction. The string, the multiplexer, the stepping stone, the sun, and the fusion/fission reactor are all one and the same, the perception of which depends upon the location of the perceiver on the resulting timeline.
No matter where/when you are, you are at a point, which becomes a circle, which becomes a vortex, limited only by the perception “rules” that you have willingly accepted as fact, to short the vortex into easily “manageable” reality, a frame of reference. Once you have accepted a destination as the goal, life is no longer an adventure, and you must increasingly accept false assumptions, and force them upon those surrounding you, to maintain the illusion of the false reality.
Colors do not actually exist. They are frames of reference on the timeline, a refraction of reality. From the perception of the electron, the proton becomes increasingly excited, trying to prove the false assumption of time, until it implodes into a black hole, creating time. The proton decelerates until there is no time. From the perspective of the proton, the electron exists beyond sight. Parties A, B, and C are frames of reference.
The trick to getting out of prisoners (prism’s) dilemma is realizing that you may move the frame of reference at will, at the individual, local, state, federal, and global level (dominoes). Depending upon the level of chaos and order you are comfortable with. The aggregate is the result of individual decisions grouped into refractions.
Debt is the result of an accepted frame of reference. Like energy, it is an illusion of the system. Once accepted, it becomes a Ponzi prison. The legacy system, which naturally seeks to avoid change at all cost, wants as much debt as possible, but you actually choose how much it gets.
The planet and the universe have been playing this game of time much, much longer than the legacy interests. The trick is not to beat the system, but rather to build a new, symbiotic sub-system, which is what the universe needs to continue, to refract, to extend time along the relativity circuit. You never have a resource problem. You always have a circulation problem. Gravity, the spring, does you the favor of storing “energy” to propel you beyond the threshold of the current frame of reference.
The proton is self-immobilizing. The electron is mobile relative to the proton, normally beyond the latter’s perception. When the proton sees the electron twice, it “thinks” it will capture it on the third cycle. Sometimes you let it, sometimes you don’t, depending upon the amount of gravity required. Build your operating system accordingly.
The path to hell is sneaky slippery and fast. The path back out is aggravatingly slow and treacherous. The problem with installing an elevator is that the passengers tend to get out, turn, and jump back into the hole, which is why you want to get cash up front, transform it on the way, and have your knife ready, to cut yourself loose. The competition is to pull you in, so the chickens can feed off your carcass. Best to take them up one floor at a time, and close the shaft below as you go.
When the chickens demand that you make soup from their sh** and you look around to see everyone else doing so, a leap of faith away from your new black hole focal point is the intelligent decision. The black hole feeds on fear, so don’t look back, unless you want it to see you. Like recognizes like.
Such gravity!
Thanks, I needed that.
I think the same way when I know I shouldn't but what the hell are you supposed to do with all this data?
That was like meta-techno rap.
+1