This page has been archived and commenting is disabled.

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:


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.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/31/2012 - 09:19 | 2664714 spanish inquisition
spanish inquisition's picture

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

Tue, 07/31/2012 - 09:23 | 2664741 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 | 2664798 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."

Tue, 07/31/2012 - 09:42 | 2664818 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 | 2664850 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 | 2664869 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 | 2664884 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 | 2664803 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 | 2664797 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 | 2665444 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 | 2664715 EZT
EZT's picture

Finally some clarity!

Tue, 07/31/2012 - 09:19 | 2664716 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 | 2664735 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 | 2664779 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 | 2664863 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 | 2665195 Ghordius
Ghordius's picture

Belgium? Ask UKIP MEP Nigel Farage

Tue, 07/31/2012 - 09:20 | 2664718 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 | 2664721 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 | 2664722 buzzsaw99
buzzsaw99's picture


Tue, 07/31/2012 - 09:20 | 2664724 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 | 2664725 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 | 2664726 EL INDIO
EL INDIO's picture

It looks like Tyler has a Physics background!


Tue, 07/31/2012 - 09:42 | 2664812 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 | 2664893 EL INDIO
EL INDIO's picture

no observer interference = no loss of confidence

Tue, 07/31/2012 - 11:12 | 2665132 Overflow-admin
Overflow-admin's picture

Are you suggesting a Schrödinger economy model?

Tue, 07/31/2012 - 09:55 | 2664852 IToldYouSo
IToldYouSo's picture

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

Tue, 07/31/2012 - 10:11 | 2664913 Lohn Jocke
Lohn Jocke's picture

What goes up must come down.

Tue, 07/31/2012 - 09:21 | 2664727 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 | 2664731 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 | 2664732 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 | 2664737 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 | 2664747 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 | 2664849 markar
markar's picture

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

Tue, 07/31/2012 - 10:35 | 2665005 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 | 2664857 IToldYouSo
IToldYouSo's picture

TT Didnt you mean "talking arseholes"?

Think I may have fixed that for ya :)

Tue, 07/31/2012 - 10:39 | 2665016 ThunderingTurd
ThunderingTurd's picture

I did...thanks for the fix!

Tue, 07/31/2012 - 09:24 | 2664744 Jlmadyson
Jlmadyson's picture


Tue, 07/31/2012 - 09:24 | 2664746 vertexa
vertexa's picture


Tue, 07/31/2012 - 09:26 | 2664750 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 | 2664752 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.


Tue, 07/31/2012 - 09:30 | 2664770 jeff314
jeff314's picture

Like Joe Bidden

Tue, 07/31/2012 - 09:30 | 2664771 Temporalist
Temporalist's picture

Long on schadenfreude

Tue, 07/31/2012 - 10:12 | 2664921 Lohn Jocke
Lohn Jocke's picture

Finally! an ETF for cynics and libertarians.

Tue, 07/31/2012 - 09:29 | 2664753 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 | 2664755 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 | 2664809 GERxit
GERxit's picture


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


Tue, 07/31/2012 - 09:50 | 2664840 Linus2011
Linus2011's picture


Tue, 07/31/2012 - 12:53 | 2665443 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 | 2665144 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 | 2665185 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 | 2664759 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 | 2664763 elwu
elwu's picture

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 | 2664845 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 | 2665214 Svendblaaskaeg
Svendblaaskaeg's picture

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

Tue, 07/31/2012 - 09:28 | 2664765 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 | 2664773 BarryG
Tue, 07/31/2012 - 09:31 | 2664784 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 | 2664785 Mugatu
Mugatu's picture

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

Tue, 07/31/2012 - 09:33 | 2664788 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 | 2664792 Temporalist
Temporalist's picture

It seems to me the beggars keep choosing the politicians.

Tue, 07/31/2012 - 09:35 | 2664794 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 | 2664805 localpacific
Tue, 07/31/2012 - 09:40 | 2664806 BarryG
BarryG's picture

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

Tue, 07/31/2012 - 09:42 | 2664815 magpie
magpie's picture

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

Tue, 07/31/2012 - 09:58 | 2664859 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 | 2664939 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 | 2665088 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 | 2665152 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 | 2665161 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 | 2665181 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 | 2665714 kalasend
kalasend's picture

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

Do NOT follow this link or you will be banned from the site!