Shadow Banking Contagion Approaches As European Banks Sign Private Repo Agreements With US Counterparts

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 09/14/2011 - 23:23 | 1671750 Rahm
Rahm's picture


Wed, 09/14/2011 - 23:32 | 1671782 phyuckyiu
phyuckyiu's picture

Back in late '08 I started screaming at my ex-wife that Libor was getting huge and banks were not lending to each other anymore, aka money is stuck, and we needed to sell our house in bum fuck and move before the velocity of money came to a standstill. She told me to wait 5 years, Obama will fix everything, and that she had no idea what Libor was and didn't care. I got a divorce.

Wed, 09/14/2011 - 23:36 | 1671795 bob_dabolina
bob_dabolina's picture

That's commitment

Wed, 09/14/2011 - 23:39 | 1671802 phyuckyiu
phyuckyiu's picture

You can commit to poverty if you wish :)

Wed, 09/14/2011 - 23:41 | 1671812 Dingleberry
Dingleberry's picture

Did you lose your a$$ on the house, or on the divorce? Or perhaps both?

Thu, 09/15/2011 - 00:08 | 1671881 pan
pan's picture

In these times you definitely stick her with the house.

Thu, 09/15/2011 - 00:23 | 1671918 phyuckyiu
phyuckyiu's picture

The house lost half the value, it was in bum fuck Oregon. Happy to be back in the Bay Area near my parents, where I don't have to consciously use double negatives to fit in (it sounds prude but I hate poor english). Actually maybe I am a prude I saw Philip Glass with my parents last weekend, that's like Woody Allen prude. Not happy to have lost a best friend, but i've already lost half my life's work as it is. I had to downgrade to Felton from Los Gatos when I came back, not that i'm a huge fan of Los Gatos but their school district made me money. Consider me one of those that slipped down from the middle class, cuz I aintz got no dough, cuz.

Thu, 09/15/2011 - 00:41 | 1671969 eisley79
eisley79's picture

this tyler said "us" refering to himself as part of Europe, stay in character tylers!

Thu, 09/15/2011 - 05:13 | 1672296 George the baby...
George the baby crusher's picture

Actually he was refering to Ben Bernanke bailing out the European banks.  So he maintained his character quiet well.

Thu, 09/15/2011 - 18:47 | 1675259 eisley79
eisley79's picture

no he(of they) didnt, the US/NA is always "us", never europe, europe is always "them"



Thu, 09/15/2011 - 02:43 | 1672142 Absalon
Absalon's picture

So you left your wife and moved back to Mommy.   Your ex-wife's better off without you.

Thu, 09/15/2011 - 05:05 | 1672261 phyuckyiu
phyuckyiu's picture

Laugh I am guilty of having an intact family that I see once every few weeks. They live 100 miles away from me, but i'm sure that's too close for a bitter caucasian housewife such as yourself. You'd probably disapprove of our trips to the Museum of Modern Art or the De Young, or the Symphony, far too nebbish for someone as cool as yourself. They are also in their late 70's and I want to appreciate them before they are dead, which could be anytime. Apologies to those who don't enjoy their family, I realize they are legion. Perhaps if you had come from a supportive, loving family you wouldn't be so angry. Cheers.

Thu, 09/15/2011 - 05:11 | 1672294 jeff montanye
jeff montanye's picture

your ex wife is lucky to be ex.

Thu, 09/15/2011 - 07:57 | 1672300 phyuckyiu
phyuckyiu's picture

Yes I know, best to leave the people that still talk to their family alone. Totally agree. I must be such a dweeb, going to museums with my -gasp- parents. I promise we'll pick more macho things to do down the road so you'll approve, except that they're old and the era of season Raiders tickets was 35 years ago. Or I suppose you object to someone seeing his parents twice a month before they are dead, it must be a sign of weakness. Sad. Or somehow I have to move away from my beloved Bay Area to prove to you some freudian theory on separation? I've tried, there is no place better than the Bay Area. If you don't get it, I can't help. And my parents lived here first. Bummer. The Bay Area is a huge place, I live in the woods near Santa Cruz, far from pretty much everything. I hope when you turn 78 that someone still wants to talk to you, but wouldn't it be justice after your post if you sat by yourself all day every day at that age? And to think all this started over a Philip Glass concert. LOL.

Thu, 09/15/2011 - 08:40 | 1672628 Comay Mierda
Comay Mierda's picture

arguing on the internet is like competing in the special olympics - even if you win, you are still retarded



Thu, 09/15/2011 - 13:23 | 1673925 phyuckyiu
phyuckyiu's picture

So true, gotta love the one line innuendos from assholes.

Thu, 09/15/2011 - 10:05 | 1673111 Pegasus Muse
Pegasus Muse's picture

And to think all this started over a Philip Glass concert.

Might have been worth it had it been a decent composer -- a Tchaikovsky, Brahms, Mahler, etc.

Glass' minimalist 20th century stuff does little for me.

Thu, 09/15/2011 - 13:27 | 1673947 phyuckyiu
phyuckyiu's picture

Glass is a little like chinese water torture.

Wed, 09/14/2011 - 23:40 | 1671805 Crisismode
Crisismode's picture

Was she any good in bed?

Thu, 09/15/2011 - 07:25 | 1671942 phyuckyiu
phyuckyiu's picture

My first post made it sound like I hated her, but I only hated her ignorance of things that really matter, during times that really matter. Some of course will say the only thing that matters is love. Anyone in a marriage knows that money troubles is a make or break scenario, very dicey. Everyone gets along great till there is money issues. Buying a business up in Oregon to make your wife happy and bleeding all your equity, and then watching all the doors to possibly selling the place quickly closing, is not the easiest scenario. To judge me that shallow with just a few posts is premature. She took the Sybian with her, does that help? :)

Thu, 09/15/2011 - 00:25 | 1671923 Two Towers AU AG
Two Towers AU AG's picture

bob_dabolina  Its not commitment. Its called discipline.

A guy told me one time ..Dont let yourself get attached to anything you are not willing to walk out on in 30 seconds flat. when you feel the heat around the corner.  (see @ 2:13-3:03)



Wed, 09/14/2011 - 23:50 | 1671835 Long-John-Silver
Long-John-Silver's picture

My wife thought I had gone insane when I cleaned out the 401(k)'s and the savings accounts except for enough to float along. I then went physical Gold and Silver at a 25/75% ratio. I've gone from being a raving lunatic to an evil financial genius these past few years.

Wed, 09/14/2011 - 23:56 | 1671852 Fiat2Zero
Fiat2Zero's picture

I did the same but less than a year ago.  I am transitioning out of raving lunatic to evil financial genius as the PMs are moving higher.  Alas the manipulation lately is definitely trying to take some of shine off my reputation.  I guess I'll have to wait for the Fall/Winter surge for confirmation.

Maybe I'm like the "mini-me" size evil financial genius now...

Thu, 09/15/2011 - 00:04 | 1671861 Waffen
Waffen's picture

Indeed i had gone from crazy lunatic to "you can assfuck me" in April until May 1st when it was "you can sleep on the couch."

I am now back to speaking terms and am also waiting for the Fall/Winter surge to return to daily blowjobs.



full disclosure

~sadly, reality was April (your awesome) to May (you suck) and now its (meh). any sexual relations with the wife have always been hit or miss~

Thu, 09/15/2011 - 00:12 | 1671888 pan
pan's picture

Re. your sexual relations, the problem is that you married her.  If you were still just dating her, you'd be getting it regularly.  I am speaking from experience.

Thu, 09/15/2011 - 00:19 | 1671910 Dugald
Dugald's picture

Make this man  Fed Tres....quick

Thu, 09/15/2011 - 01:28 | 1672052 dasein211
dasein211's picture

Fuck that is so true. I nominate you for president and warn anyone dating that if you hate sex and working out all the time than by all means get married.

Thu, 09/15/2011 - 00:13 | 1671891 Crisismode
Crisismode's picture

Women are just funny that way.


You can't live with them,


But  you certainly can live without them.

Thu, 09/15/2011 - 00:32 | 1671948 phyuckyiu
phyuckyiu's picture

Best post on the thread by far.

Thu, 09/15/2011 - 00:40 | 1671967 TheBadgersSett
TheBadgersSett's picture

excellent mini thresd within an already exclellent thread. Excellent.

Thu, 09/15/2011 - 08:07 | 1672522 ZeroPower
ZeroPower's picture

Inception o.0

Thu, 09/15/2011 - 06:49 | 1672385 papaswamp
papaswamp's picture

Get a sailboat...head for a tropical island with plenty rum, bow ornaments some gold. When this whole shitsotrm finally hits, that's my plan.

FOr you non-nautical types...bow ornaments:

Thu, 09/15/2011 - 06:49 | 1672387 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

That's why I only talk to my wife about the weather.


This December we'll have been together for 15 years.

Wed, 09/14/2011 - 23:29 | 1671762 CapitalistRock
CapitalistRock's picture

It boggles the mind that people are sitting in stocks "for the long haul". Fewer than 1 in 500 Americans own even a single ounce of gold bullion.

Wed, 09/14/2011 - 23:31 | 1671774 Thomas Jefferson
Thomas Jefferson's picture

Im scared shitless about the money I have in my business checking account. 

Wed, 09/14/2011 - 23:38 | 1671800 bob_dabolina
bob_dabolina's picture

Jonesin' for that fiat.

Wed, 09/14/2011 - 23:43 | 1671814 rocker
rocker's picture

Have you ever heard of withdrawal and safe deposit boxes.  Or even a safe or two.  

Just buy one that two monkeys can not carry and your safe. Eh.

Thu, 09/15/2011 - 00:04 | 1671868 Belarus
Belarus's picture

Other than working capital needs, you shouldn't have ANY money in a business checking account. Pay it out as a dividend or make up some property and plant expenditures and move the money out. Jesus, who sits on your board?

Thu, 09/15/2011 - 00:06 | 1671873 readytoleave
readytoleave's picture

When liquidity dried up overnight in 2008 our banker went absoulutely nuts...  We had been giving him our financials every 30 days for over five years.  All of a sudden there were "issues" with our ratios...  Check any loan docs that you have a balance on. 

Check them very carefully for "Demand Clauses."  When this turns South --- again.... The bankers will be coming first after every quick dollar they can get their hands on(your checking account) and second they'll come after anything that they can sell for even 20 cents on the dollar -- quick.

I have found bankers to be the worst business people in the world.  I always thought "these guys lend out other people's money" they must be really sharp to be able to quantify and classify that kind of risk.  I was so far off it's not even funny.

The best thing that all of us "business people" can do is stay off the radar screens of the bankers and the IRS.  I can assure you --- it's no easy feat.  They will both make sh**t up to take your money -- and if "your" money is in a bank --- it isn't your money -- it's theirs.  You have a contract that they will breach at will.  They can take it out of your account at will !!  It isn't theft -- it's "bank process."  It's a civil matter and you have to use the courts to try and get it back. 

The banks throughout this country are screwed.  Their balance sheets are screwed --- and hence any money you have in a bank (which is actually nothing more than a bunch of 1's and 0's on a hard disk) is at risk.  I'm not being dramatic...  I'm speaking from experience.

That's why my user name is "readytoleave." 

My guess is that there is already a very quiet bank run happening throughout Europe.  It's been going on for weeks if not months.  The smart/big corporate money is moving it as fast as humanly possible without setting off any alarms...  

We use a small, little know institution on that side of the pond and two weeks ago I awoke to not being able to access our accounts -- "the web site just wouldn't resolve."

I thought holy sh**t.  For two days we couldn't make any transactions. 

And that's the way it's going to happen...   Everyone will wake up on a seemingly quiet Tuesday morning and you just won't be able to get to your accounts....

What is coming has already happened to a number of businessmen like myself.  But the next time --- and it will be soon --- will be so much worse.

Thu, 09/15/2011 - 00:25 | 1671922 Thomas Jefferson
Thomas Jefferson's picture

Well said.  Argentina style.  Looks like Ill have to sleep in my adult diapers tonight.

Thu, 09/15/2011 - 02:44 | 1672144 Founders Keeper
Founders Keeper's picture


Thu, 09/15/2011 - 00:36 | 1671957 FreeNewEnergy
FreeNewEnergy's picture

You are 100% correct. Keep all loan balances high, so that the banks cannot cut your credit limit. If and when they do, stop paying, period.

I am more than happy to borrow at 23, 28, 34% interest on money that is depreciating at 6-8-10% a year. Why should I care? I'll borrow as much as possible of they'll lend it because I'm buying assets for a buck that are worth three, six, ten on the open market, so the interest expense is rather negligible, or, using the Chairman's term, "transitory."

To me, that translates into "if there's an absolute asset crash, I'll keep paying," because I'm that liquid and if my bank has any brains at all, they'll follow me to Nirvana.

Sadly, I have never met a banker with brains, nor a buyer with adequate restraint. I've either been cursed or very lucky, but I am still standing and doing business... and it seems to be getting better.

Thu, 09/15/2011 - 02:02 | 1672091 IQ 145
IQ 145's picture

That's right. the French and Austrian Bankers can hear the giant sucking sound; the wealthy European clients aren't renewing their CD's or their bonds. A quiet bank run. I think a lot of this is showing up as the frankly lunatic buying of long term treasuries in the US; some of it bleeds off into Gold and Silver.

Wed, 09/14/2011 - 23:32 | 1671783 rocker
rocker's picture

But, but, but they have those earnings from last year. Eh.

Thu, 09/15/2011 - 01:42 | 1672077 Whalley World
Whalley World's picture

Seeing as the North American average is 1% I'd say us Canucks and our Mexican Compadres are sitting a little prettier.

Wed, 09/14/2011 - 23:30 | 1671765 bluebare
bluebare's picture


Wed, 09/14/2011 - 23:30 | 1671766 bankonzhongguo
bankonzhongguo's picture

It's all part of the Plan.

Wed, 09/14/2011 - 23:31 | 1671767 Thomas Jefferson
Thomas Jefferson's picture

Tick.... Tick.... Tick....

Wed, 09/14/2011 - 23:31 | 1671768 macfly
macfly's picture

It really does just go from bad to worse, and my shorts were squeezed bad today, but I'm chilling and waiting for a roll over.

Wed, 09/14/2011 - 23:34 | 1671786 rocker
rocker's picture

This is what's fueling the market, weak short hands. The rest is just air on No Volume.

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