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Schauble Makes It Clear: Beggars Can't Be Choosers

Tyler Durden's picture





 

Merkel may still be on vacation, but Germany decided to make it all too clear just who is in charge after last week's idiotic headfake by Draghi et cie:

  • GERMAN FINANCE MINISTRY SEES NO NEED TO GIVE ESM BANK LICENSE
  • GERMAN MINISTRY SAYS THERE ARE NO SECRET TALKS ON BANK LICENSE
  • GERMAN MINISTRY SAYS NOT HOLDING TALKS ON BANK LICENSE FOR ESM

Translating Schrodinger Schauble: the quantum state of Begging and Choosing can not co-exist in tensor superposition. Just in case the previous headline from the Bundesbank was not clear enough.

 


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Tue, 07/31/2012 - 09:19 | Link to Comment spanish inquisition
spanish inquisition's picture

Herr Schaublel, maybe you are not invited to the secret meetings?

Tue, 07/31/2012 - 09:23 | Link to Comment TIMBEEER
TIMBEEER's picture

But it's clearly Germany's faul that the others had such a long, hot party - why shouldn't everyone be entitled to party on at Germany's (and FI, NL) cost ?!?

Tue, 07/31/2012 - 09:37 | Link to Comment Biggvs
Biggvs's picture

So Germany rains on the parade. Plus didn't Hilsenrath just give the Fed additional breathing room to do NOTHING tomorrow?

From WSJ (emphasis mine): "Markets have risen on hopes that two of the world's most influential central banks will make additional moves to spur growth if their economies don't perk up—if not this week, then in the weeks ahead."

http://on.wsj.com/Q980dK

Tue, 07/31/2012 - 09:42 | Link to Comment The Monkey
The Monkey's picture

This is part of the monkey business the German political machine has to go through in order to make the final decision more palatable to it's people.

Note Shauble's words are choosen carefully, and consider Merkle's language leading up to the last summit.

Tue, 07/31/2012 - 09:54 | Link to Comment Gavrikon
Gavrikon's picture

I've planned to keep some Euros marked with the German code stuffed under my mattress, just in case.  But, the more time goes by, the more sense it makes to keep my emergency money as gold.

Tue, 07/31/2012 - 10:01 | Link to Comment malikai
malikai's picture

If the end state of all this is a completion of this crooked end of the cycle, those German notes may make for some excellent collector's items.

Try to make sets of high quality differing vintage. Might just be more valuable than gold some day.

Tue, 07/31/2012 - 10:05 | Link to Comment Linus2011
Linus2011's picture

it is.

"When things get serious - you have to lie"

That is the basic motto of the Eurozone as frankly spoken from its top official Juncker.

It is all you need to know about any statement released by these officials.

Some of them might escape, some of them will be shot, some of them will be hung. That is what i am saying.

Tue, 07/31/2012 - 09:48 | Link to Comment Bob
Bob's picture

And it's clearly the German citizens' fault that private banks lent money they shouldn't have to the banks of the periphery that now all have to be bailed out with pubic funds on both ends

Pitting the actual people against one another between nations is just cover for the continued looting . . . by banksters forced to share the take with hedge funds taking advantage of the charade that must be played in capital markets to keep it all looking legit. 

Tue, 07/31/2012 - 09:37 | Link to Comment BandGap
BandGap's picture

There is a finite possibility that Germany will do exactly the opposite of what they are stating - Quantum Mechanical Financial Tunneling.

Tue, 07/31/2012 - 12:54 | Link to Comment Sir Edge
Sir Edge's picture

Merkel and Draghi's Back and Forth Remind Me of the Search For Schrodinger's Cat... :o)

Tue, 07/31/2012 - 09:19 | Link to Comment EZT
EZT's picture

Finally some clarity!

Tue, 07/31/2012 - 09:19 | Link to Comment adr
adr's picture

So that means there will be another rumor of the ESM getting a banking license and buying more bonds today?

Tue, 07/31/2012 - 09:22 | Link to Comment OttoMBMP
OttoMBMP's picture

Yep. It is much more efficient to recycle this rumour as many times as it works than to actually give this banking license right away.

All actors stick to their roles in this theatre.

 

Tue, 07/31/2012 - 09:30 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Quite right

Germans can't seem to give in too easy, even though the German banking system could explode if they don't agree in the end

It took the EU leaders a while to figure out to play this 'two party system' game, like Dems and Repubs in the USA, but now they have learned how to do it on an EU level, they are really enjoying it ... they are following ZH and laughing along

Latins vs Germanics ... a football match for the fans, but the team owners already know how the game ends

Tue, 07/31/2012 - 09:59 | Link to Comment Linus2011
Linus2011's picture

Latin v. Germans: so where does Belgium opt for? Well, forgot - it is basically a Non-Country, completely useless and with no opinion and no business model besides running already f+++ed up banking entities and hosting+benefiting from furthermore useless and corrupted eurocrats.

Tue, 07/31/2012 - 11:25 | Link to Comment Ghordius
Ghordius's picture

Belgium? Ask UKIP MEP Nigel Faragehttp://youtu.be/F3e6IWsJA9U

Tue, 07/31/2012 - 09:20 | Link to Comment GolfHatesMe
GolfHatesMe's picture

Can't you just put a quarter into the Banking license vending machine at 33 Liberty Street?

Tue, 07/31/2012 - 09:20 | Link to Comment gjp
gjp's picture

Yeah, but do you think the market will give back its fake gains from last week.  Nah, iPhone 5 is coming!

Tue, 07/31/2012 - 09:20 | Link to Comment buzzsaw99
buzzsaw99's picture

Bullish.

Tue, 07/31/2012 - 09:20 | Link to Comment thewhigs
thewhigs's picture

I'm glad some entity is "standing their ground". I'm really sick and tired of this silly nonsense.

Tue, 07/31/2012 - 09:20 | Link to Comment bugs_
bugs_'s picture

this is a dog license with the word dog crossed out and Bank written in crayon

Tue, 07/31/2012 - 09:21 | Link to Comment EL INDIO
EL INDIO's picture

It looks like Tyler has a Physics background!

Interesting!

Tue, 07/31/2012 - 09:42 | Link to Comment DeadFred
DeadFred's picture

The wave function need not collapse as long as there is there is no observer interference. If we all look away the euro can stay afloat. Everyone, heads in the sand!

Or not.

Tue, 07/31/2012 - 10:06 | Link to Comment EL INDIO
EL INDIO's picture

no observer interference = no loss of confidence

Tue, 07/31/2012 - 11:12 | Link to Comment Overflow-admin
Overflow-admin's picture

Are you suggesting a Schrödinger economy model?

Tue, 07/31/2012 - 09:55 | Link to Comment IToldYouSo
IToldYouSo's picture

TD...... what a quant! :)

Tue, 07/31/2012 - 10:11 | Link to Comment Lohn Jocke
Lohn Jocke's picture

What goes up must come down.

Tue, 07/31/2012 - 09:21 | Link to Comment Cursive
Cursive's picture

From the looks of SPX futures, some people/algos have still not gotten the word.  Or maybe they are waiting for Wednesday FOMC.

Tue, 07/31/2012 - 09:22 | Link to Comment The Axe
The Axe's picture

Steve L says germans do not know shit!!!!  ha ha    this circle jerk is nuts

 

Tue, 07/31/2012 - 09:22 | Link to Comment fbachan
fbachan's picture

When an Europen official publicly asserts something, isn't it actually just the mater of time untill he declares the opposite? 

Tue, 07/31/2012 - 09:22 | Link to Comment adr
adr's picture

If the market shoots up 600 points because of a rumor, does it drop 600 points when the rumor is refuted?

Sadly, most of the time the answer is no. Nowyou have your answer as to why the rumors keep hitting the tape.

Tue, 07/31/2012 - 09:25 | Link to Comment ThunderingTurd
ThunderingTurd's picture

You are spot on.  I don't see why talking heads wouldn't keep their mouths open 24/7.  Who cares if there is any substance to a strategy if equities go higher.

Tue, 07/31/2012 - 09:54 | Link to Comment markar
markar's picture

Because rumors are like QE. Their continuous effects yield diminishing returns.

Tue, 07/31/2012 - 10:35 | Link to Comment ThunderingTurd
ThunderingTurd's picture

Really?  I think the equity market would disagree with you.  Germany just totally shot down the rumor that ramped the SPX by 500 points and we are UNCH on the day.  I am not agreeing with the strategy and find it unbelievably frustrating; but at the end of the day, it is obviously working if the goal of central criminals is elevate equity prices.

Tue, 07/31/2012 - 09:57 | Link to Comment IToldYouSo
IToldYouSo's picture

TT Didnt you mean "talking arseholes"?

Think I may have fixed that for ya :)

Tue, 07/31/2012 - 10:39 | Link to Comment ThunderingTurd
ThunderingTurd's picture

I did...thanks for the fix!

Tue, 07/31/2012 - 09:24 | Link to Comment Jlmadyson
Jlmadyson's picture

Whoops

Tue, 07/31/2012 - 09:24 | Link to Comment vertexa
vertexa's picture

DOOM ON!!!!

Tue, 07/31/2012 - 09:26 | Link to Comment GERxit
GERxit's picture

In the end the beggars might really be the choosers... or more appropriately blackmailers! (900bn Target II - growing daily!) That's the real foul here!

Tue, 07/31/2012 - 09:26 | Link to Comment DavidC
DavidC's picture

Draghi and Hollande are like embarrassing people who keep saying the wrong things in front of other people, you just want them to shut up and leave.

DavidC

Tue, 07/31/2012 - 09:30 | Link to Comment jeff314
jeff314's picture

Like Joe Bidden

Tue, 07/31/2012 - 09:30 | Link to Comment Temporalist
Temporalist's picture

Long on schadenfreude

Tue, 07/31/2012 - 10:12 | Link to Comment Lohn Jocke
Lohn Jocke's picture

Finally! an ETF for cynics and libertarians.

Tue, 07/31/2012 - 09:29 | Link to Comment falak pema
falak pema's picture

without the ESm license, without eurobonding, without increasing the size of ESM funding, Monti, Rajoy and Hollande will be reduced to playing three card monte amongst themselves! Beggar thy neighbor-friend. Pull the plug on euro contagion sink...

What is Timmy doing in Europe if he can't get Schauble to budge on this?

The Draghi/Merkel stand-off is reaching critical point deadline. 

Que passa?...If it blows we don't know how to close! 

Tue, 07/31/2012 - 09:30 | Link to Comment Linus2011
Linus2011's picture

Tyler seems to have majored in physics just like me.

However since he does not live in Germany just like me he completely misoverestimates Germany and German politicians especially Schäuble.

They are neither smart or tough nor do the have a grand plan that saves Germany from the parasite states of Europe and guide our escape to financial solitude.

Not at all. They are just plain stupid politicians.

 

Tue, 07/31/2012 - 09:42 | Link to Comment GERxit
GERxit's picture

+1000

ENDLICH MAL EINER, DER DIE WAHRHEIT SAGT und nicht mit diesen beschissenen Hitler Thesen hier ankommt! (s.u.)

DANKE!

Tue, 07/31/2012 - 09:50 | Link to Comment Linus2011
Linus2011's picture

bitte

Tue, 07/31/2012 - 12:53 | Link to Comment Treason Season
Treason Season's picture

If anyone's curious google translation;

LAST TIME ONE THAT TELLS THE TRUTH, not these shitty theses Hitler gets here!

 

Tue, 07/31/2012 - 11:13 | Link to Comment Haager
Haager's picture

Ich wäre an dieser Stelle doch gerne etwas vorsichtiger, immerhin kann man davon ausgehen dass im Hintergrund noch Leute mit Verstand arbeiten. Aber in Bezug auf "einen Plan haben" stimme ich soweit zu.

Tue, 07/31/2012 - 11:22 | Link to Comment Ghordius
Ghordius's picture

I mostly agree with the sentiments, here and above. But the whole EUR construct has - as a friend liked to say 15 years ago - an "autopilot".

The situation we have is of a quite classic currency war. Everybody would like to devalue. We all knew that after 1971 this moment would come, and many feared it would come before the introduction of the EUR. Now relax and watch the Frankenstein vs Dracula match.

oh, and buy phyz, slowly, every month a bit. call it saving.

Tue, 07/31/2012 - 09:41 | Link to Comment Everybodys All ...
Everybodys All American's picture

Mission accomplished. The stock markets are higher and bond prices are weaker.  Could these bankers have said this same thing last week when Mario was talking? This is collusion between the banks and markets.

Expect the same cycle of events to be repeated over and over again. The plan is to provide as much time to pass as possible in order that the European economy may find it's own footing and become self sustaining. This is only the beginning of this nauseating cycle because I think this will go on for years and years just like in Japan with the economy limping along in a near zero growth environment.

 

Tue, 07/31/2012 - 09:39 | Link to Comment elwu
elwu's picture
  • GERMAN FINANCE MINISTRY SEES NO NEED TO GIVE ESM BANK LICENSE
  • GERMAN MINISTRY SAYS THERE ARE NO SECRET TALKS ON BANK LICENSE
  • GERMAN MINISTRY SAYS NOT HOLDING TALKS ON BANK LICENSE FOR ESM

He is, of course right. Because the ESM doesn't need a bank licence at all to act like a bank. Maybe you guys should actually read the ESM contract, so you know hat you are blogging and discussing about?

Article 32, clause 9 of the ESM:

The ESM shall be exempted from any requirement to be authorised or licensed as a credit institution, investment services provider or other authorised licensed or regulated entity under the laws of each ESM Member.

Got it now?

Tue, 07/31/2012 - 09:53 | Link to Comment milanitaly
milanitaly's picture

Not sure. Everybody here don't want understand that german politicians are playng a role in a comedy as they well know that germany risks more than other countries by euro break up

Tue, 07/31/2012 - 11:29 | Link to Comment Svendblaaskaeg
Svendblaaskaeg's picture

EU: Treaty of debt (ESM) - stop it now!

http://www.youtube.com/watch?v=5CZr17HLH5U

Tue, 07/31/2012 - 09:28 | Link to Comment marcusfenix
marcusfenix's picture

and so for the second time Germany conquers France...

without firing a shot.

blitzkrieg 2.0

Tue, 07/31/2012 - 09:30 | Link to Comment BarryG
Tue, 07/31/2012 - 09:31 | Link to Comment same old story
same old story's picture

all smoke and mirrors.  As tyler's post on gold showed all the CB work together and politicians do as they are told.  germany will get in line, but for now they are being allowed to reap some benefit to keeping the euro low.

Tue, 07/31/2012 - 09:31 | Link to Comment Mugatu
Mugatu's picture

Futures are down 0.1% - quick, queue the screams for QE!

Tue, 07/31/2012 - 09:33 | Link to Comment deez nutz
deez nutz's picture
Schauble Makes It Clear: Beggars Can't Be Choosers

 

how do we in the US continue to get away with it?

Tue, 07/31/2012 - 09:35 | Link to Comment Temporalist
Temporalist's picture

It seems to me the beggars keep choosing the politicians.

Tue, 07/31/2012 - 09:35 | Link to Comment wagthetails
wagthetails's picture

It is dangerous to believe any side is telling the truth.  logic says Germany won't do "whatever is necessary" including cutting off its legs...but can we really assume anything?  When we finally get to the "unless we act, expect tanks in the street tomorrow" point...we won't be able to apply any logic...just fear based decisions.  Germany may indeed elect to cut off an apendage.  you can't short or buy this market, just simply not play.  which is why volume is so low. 

The illegal drug trade has clearer price signals that the world's financial markets.  FACT! 

Tue, 07/31/2012 - 09:39 | Link to Comment localpacific
Tue, 07/31/2012 - 09:40 | Link to Comment BarryG
BarryG's picture

Some believe WW2 has been back on for a while...

http://www.theshrimptonreport.blogspot.co.uk/2012/07/the-dvds-u-boats.html

Tue, 07/31/2012 - 09:42 | Link to Comment magpie
magpie's picture

An U-Boat is a bit unexciting compared to a Vril-powered flying disk.

Tue, 07/31/2012 - 09:58 | Link to Comment markar
markar's picture

So the general consensus here is Germany will hoist itself on the batard and self destruct to save the union? 

Tue, 07/31/2012 - 10:16 | Link to Comment BudFox2012
BudFox2012's picture

TPTB need to get some new daily circus side shows going, I'm getting bored with the ones they have been playing.  The daily ESM/France/Spain/Italy vs the Germans conflicting press conferences are getting old, almost as bad as the daily QE3 rumors followed up by Fed denials (sort-of). 

Tue, 07/31/2012 - 11:03 | Link to Comment Nussi34
Nussi34's picture

When is someone finally going to bomb Brussels? I cannot hear the bull that is coming out of Brussels anymore!

Tue, 07/31/2012 - 11:15 | Link to Comment Haager
Haager's picture

Looks like some scene of a theatre to me, but it becomes boring. How long does it take to show the final scene? 

Tue, 07/31/2012 - 11:17 | Link to Comment NoTTD
NoTTD's picture

You have far too much faith in Germans.  True, the people themselves might object to selling their soveriegnty to the Greeks but their political leaders desparately want the Euro to work.  On the other hand, it's better than them invading Poland.  But only marginally better.

Tue, 07/31/2012 - 11:22 | Link to Comment miker
miker's picture

Draghi will win this battle.  He will ease.  Alot of German official protest is political cover. 

Everyone is pretty much realizing that if they don't print, the whole thing will be down the tubes.  Literally a long term depression in Euroland.  What choice do they have?

Tue, 07/31/2012 - 14:08 | Link to Comment kalasend
kalasend's picture

Anyone beside me thinking there's a quant among the many TD's?

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