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SocGen Sums It Up: "The Time For Patching It Up Is Over"

Tyler Durden's picture


While next to impossible, now may be a good time to ignore the constant barrage of meaningless noise and flashing red headlines, which not only are contradictory but prove that Europe is literally making it all up as it goes along. Today is a great case in point of a tangential detour which does nothing to change the reality that Germany no longer wants Greece in the Eurozone (remember, oh, yesterday), and that the ECB is merely playing possum with PSI creditors who will block the deal with even greater vigor than before (anyone recall the FT story about the PSI deal being on the verge of collapse not due to the ECB but due to private creditors?) as the ECB's even bigger subordination will simply make the amount of hold outs even greater. So while algos take the required 12-48 hours to figure out what just happened today, here is SocGen's Suki Mann stepping back from the endless daily din, and summarizing what is really happening in Europe.

Form SocGen

The time for patching it up is over; Greece looks as if it can no longer stop the seams from falling apart. Restructuring (an economy) in a low (negative) growth environment simply does not work. The prescribed medicine (austerity) has failed; debt forgiveness (PSI) can't be agreed; and we are heading for debt default. The iterative process which defines the political response on these occasions has been unsuccessful, but the time for reflection will come later. It's been a tumultuous two years. The immediate investment case now focuses  on contagion and its containment. Now we ask whether we're really better placed to handle a default - whatever form it takes? Orderly/disorderly, much of the corporate credit universe should come through relatively unscathed, but risk asset pricing will be impacted nonetheless. Technicals of sidelined cash and an opening New Year frenzy have got us here, boosted by ECB manipulation of peripheral risk (sovereign and bank) through the LTRO. However, nearing the end game of the Greek situation now sees us with a different reality. Spreads are moving wider, the periphery is suffering the most, while turnover and secondary market liquidity have fallen off a cliff as evidenced through widening bid-offer spreads. It’s not quite the November phenomenon, because then we had massive selling of French risk in particular, so as long as investors stay with it, the widening should be contained. As ever, we’ll be fighting against the market’s mantra over the past two years, which has been to shoot first and ask questions later.

And nowhere is this mantra more visible than in today's... actually make that everyday's EURUSD, and thus ES (thank you 100% recoupling between Euro and US risk) chart.


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Thu, 02/16/2012 - 15:44 | 2166828 Ancona
Ancona's picture

They ran out of spackling compound a couple of years ago.

Thu, 02/16/2012 - 15:49 | 2166845 LawsofPhysics
LawsofPhysics's picture

Yes, you are correct.  1971 would be a fairly accurate date.  When paper promises where just getting started.

Thu, 02/16/2012 - 15:53 | 2166862 The Watchman
The Watchman's picture

For Greece, you only have to go back to when they went to the Euro. No way to patch it inside the Euro. Exit and you will heal.

Thu, 02/16/2012 - 16:07 | 2166914 DaveyJones
DaveyJones's picture

Of course the Goldman criminals helped by hiding their true state. It's good deeds like that that makes our country trust them to run things.

Thu, 02/16/2012 - 16:14 | 2166971 Waffen
Waffen's picture

1971 you say?  That kind of rhetoric makes you a suspected terrorist.


Thu, 02/16/2012 - 15:53 | 2166860 battle axe
battle axe's picture

Greece Default and show those bastards.....

Thu, 02/16/2012 - 16:12 | 2166947 ilion
ilion's picture

Since gold, other commodities and SP500 have had quite a nice run over the last two years I've started to wonder maybe I should unload some of my long positions and put my money for example into real estate in some western European countries. If I look at the relative value of gold compared to German real estate then we've run too far with this bull market, there should be some convergence between gold and real estate prices. Any thoughts on this one?

Thu, 02/16/2012 - 16:38 | 2167090 lincolnsteffens
lincolnsteffens's picture

Don't be in a hurry. WAIT! Read, learn keep your eye on ZH and donate.

Thu, 02/16/2012 - 17:01 | 2167183 Transformer
Transformer's picture

I think you're right, now would be a good time to sell, especially gold and silver, and its derivatives, and buy real estate.  Once the Greek default happens, then this runup in the metals will be over and real estate will be turning around.

Thu, 02/16/2012 - 17:47 | 2167349 SheepDog-One
SheepDog-One's picture

'Real estate  investment' is the worst thing you could do, its not even an investment. Real estate is never an investment, you never own it. Horrible idea. If you want to buy a house, go ahead, but dont expect that bubble to come back.

Fri, 02/17/2012 - 11:18 | 2169512 Gohn Galt
Gohn Galt's picture

Exactly, you never really own it.  Just like the farm tenants in England.  There is an article on how they were going to do it in the magazine American Banker back around 1870, yes openly coordinating in the article.  The wanted the to crash the market, buy all the farmland west of the Mississippi for pennies on the dollar and then American farmer's would be tenants just like under the King.

Tyranny Tax

Fri, 02/17/2012 - 17:24 | 2171426 ilion
ilion's picture

I would suggest you read Barton Biggs "Wealth, War and Wisdom".

Real estate is an investment, especially if it pays rent.

Thu, 02/16/2012 - 16:55 | 2167149 PersonalRespons...
PersonalResponsibility's picture

Property upkeep and taxes make it a losing deal for me.  I'd love to pick some up in the USA with these incredibly low interest rates but when municipalities/states have their bond situation go belly up (among other things like decreasing tax collections), those taxes may go through the roof.  My current property tax has continuously risen.  By the time I pay off my mortgage, the taxes will probably equal my current mortgage payment.  Fucking ridiculous.

Fri, 02/17/2012 - 12:29 | 2169955 narapoiddyslexia
narapoiddyslexia's picture

Buy rental properties in jurusdictions that have property tax caps.

Thu, 02/16/2012 - 16:56 | 2167157 Panafrican Funk...
Panafrican Funktron Robot's picture

It's not a crazy idea, depending on the regulatory environment you're working in.  I hate commericial RE, but apartment complexes (esp. if supported by gov. subsidies) are at a pretty good price right now and financing is cheap as hell if you're qualified.  Apartments tend not to get hit terribly hard in recessions.  The main risk I see is property tax jumps to combat local/state/national revenue gaps, but even in that scenario, marginal ramps in rents tend to be pretty easily absorbed.  

Thu, 02/16/2012 - 17:28 | 2167276 trip kitchen
trip kitchen's picture

Wait for the Dow:Gold ratio to get near the 1:1 area, then roll your assets over into as much farmland as you can afford.  Seems as good a plan as any.

Thu, 02/16/2012 - 16:11 | 2166949 Raisuli
Raisuli's picture

Spackling always shrinks until it doesn't.

When freshly applied, it looks good. Give it a few years, and the cracks still show.

Thu, 02/16/2012 - 16:24 | 2167016 The trend is yo...
The trend is your friend's picture

All these firms are calling for a greece failure yet the Troika seem to keep the risk on mode again and again.  By the time the music stops the dow will be at 15000 and the s&p at 1500 on 100 million a day volume. 

Thu, 02/16/2012 - 17:17 | 2167237 AbelCatalyst
AbelCatalyst's picture

This feels like that US show Lost - as you watch you think all the episodes fit togehter in some way, you read into it all these nuances and plot lines, but in the end you realize it was all being made up as they went along...  there was not grand plan, no method, no underlying plot, no meaning, no purpose, no guiding principles, no dots connected...  It was just a bunch of writers sitting in a room throwing pasta on a wall and seeing what sticks...  

This is no different - EU and US leaders get together and write new scripts every week and nothing ties together - it's just what seems like a good story for this week...    

Thu, 02/16/2012 - 15:48 | 2166837 Dr. Engali
Dr. Engali's picture

The time for patching this pig up was two years ago. 

Thu, 02/16/2012 - 15:53 | 2166865 pemdas
pemdas's picture


Thu, 02/16/2012 - 16:30 | 2167051 Raisuli
Raisuli's picture

The time for this pig to default was two years ago.

Thu, 02/16/2012 - 17:49 | 2167358 SheepDog-One
SheepDog-One's picture

'Patching up'? Hell Greece was used as a money laundromat for many years, its FRAUD, not handyman work gone wrong.

Thu, 02/16/2012 - 15:48 | 2166840 GernB
GernB's picture

Theu Euro is way way up, quick buy before it goes up even more!

Thu, 02/16/2012 - 15:48 | 2166841 ekm
ekm's picture

The longer it lasts the deeper the fall. I thought the clean up would finish at S&P 950. But, since thay have invented all those LLTROOLLRRTTTOO that absolutely nobody understands, I'm thinking 850 or lower quite soon.

Thu, 02/16/2012 - 16:08 | 2166928 spastic_colon
spastic_colon's picture

Unfortunately not before S&P 1370-1400 or the expiration of twist in June whichever comes first (if 1370-1400 comes first I reserve the right to change my mind several times before June)

Thu, 02/16/2012 - 17:52 | 2167371 SheepDog-One
SheepDog-One's picture

Working quite well....theyve almost got EVERYONE completely convinced DOW 15,000 is already a done deal....I'm betting it all on the typical scam that is we're already at the top now and will revisit 6,500 again soon. BTW, everyone holding for this certain 2,000 more DOW points will never get a chance to sell, because there are no real buyers, theyll all be totaly ruined.

Thu, 02/16/2012 - 19:34 | 2167671 Market Efficien...
Market Efficiency Romantic's picture

Exactly! It seems counterintuitive, but equity is subject to inflation, hence it will rather exponentially increase in nominal value as does money supply (compare historic chart analogy). Even in this scenario, the real value of equity decerases, as earnings net inflation have topped out and the speculative value of equity decreases, as investments shift to asset classes offering an expectation of increasing profitability. IMHO, the explosive increase in money supply will drive commodities (input prices) and on average higher-yield debt (compared to current avg yields). Remaining corporate profits will be siphoned off by commodity prices and the seniority of debt (still wonder about the broad trend in large caps to store cash reserves? Central bank printing will make sure that last straw of hope to avoid serfdom will burn instantaneously. Just imagine the super seniority of debt and the largely unregulated and manipulated price setting in discrete global commodity markets. Equity and property rights will be the first victim to move from constituting element of an economy to sidenote in history books. Labour law will be next in line, followed by all kinds of national regulation. Where will control over this evolutionary process, control over social standards, pseudo-democratic representation and most importantly Darwin-like selection and population control reside? With the FED! The instruments are currently being issued, LTRO etc,, quasi-indefinite credit lines, distributed through a regulated dealer network (banks aka unified function of political representation and de-facto board of recipient entities). Marginal changes to rate and guaranteed duration are the effective tools to exercise power and control through the intermediaries - the banks. The trick: multi-trillion windows as future round LTRO etc. create a new de-facto monetary system, as the existing system is devalued through relative size of the new instruments denominated in the same base currency. The difference between the old and the new system: freedom, sovereignty, property, and incentives in the old system compared to serfdom, subordination, utility, punishment and central planning in the new system.

Two important consequences entirely oppostite to current perception: A bank's nominal request for LTRO etc. won't be a malus, it will determine the relative size and meaning in the new system and once the inevitable logic death spiral of equity will hit the market, the market's typical acceleration into endgame mode without lengthy process will pretty directly eliminate equity and the entire systematic logic behind it.

This plan and the intent of its creators is so invisible to the public due to two attributes distinguishing them from everyone else: They created this system and can think beyond, the public was socialized within the system and cannot think beyond. They perceive property as relative share of full control over all exsiting assets, whereas the public perceives property legal entitlement to associated cash flows, which in turn lets extinction of property rights appear as logically unplausible for any individuum ( of the public).

It is damn scary to watch events unfold, logically already dooming most of what matters to the public as they unfold and the public focuses on the arranged spectacular economic stunt shows arranged to divert public attention.

Thu, 02/16/2012 - 19:51 | 2167712 Market Efficien...
Market Efficiency Romantic's picture

The specific systematic changes in main stream philosophy, ethics, science and both intellectual and physical resource misallocation and their hampering effect on relevant innovation as sole driver for growth and implicitely cornerstone for the superiority of the current system to me are pretty conclusive evidence for a drift, well-designed by a group of people to achieve superiority of their preferred system.

I have personally been confronted with this as rigor vs relevance debate in science, you have all heard of unethical innovation, brilliant but unfunded invention while wasting resources on metoo venture funding of senseless retorts. But above all, it's the philosophical legitimization of artificially stalled progress through such concepts as mean reversion and equillibrium.

Fri, 02/17/2012 - 04:01 | 2168712 Phil Free
Phil Free's picture

Illuminati, bitchez.


Thu, 02/16/2012 - 17:00 | 2167177 Panafrican Funk...
Panafrican Funktron Robot's picture

Explain why you think the stock market support is ever going to stop.

Thu, 02/16/2012 - 15:48 | 2166843 Yen Cross
Yen Cross's picture

Those same Banksters on the " CFTC list",? Those European Banksters have long fingers!

Thu, 02/16/2012 - 15:49 | 2166844 bobola
bobola's picture

The trick for the EU is to avoid handing Greece any more money while keeping the damage control to a minimum.


Thu, 02/16/2012 - 16:16 | 2166980 Raisuli
Raisuli's picture

That is precisely what  will occur. Greece will get no more euros. Greek's external financials will be handled. What is the mystery about this?

Thu, 02/16/2012 - 15:50 | 2166850 mayhem_korner
mayhem_korner's picture



It's bad when the French are looking down on you.

Thu, 02/16/2012 - 15:56 | 2166880 Yen Cross
Yen Cross's picture

The Sarcasm smells of " gouda cheese", but you are correct.

Thu, 02/16/2012 - 16:55 | 2167153 RSloane
RSloane's picture


Thu, 02/16/2012 - 17:19 | 2167245 DaveyJones
DaveyJones's picture

least it's not lindberg

Thu, 02/16/2012 - 17:52 | 2167373 SheepDog-One
SheepDog-One's picture

Lindberg? Man he was a pretty good pilot, give him a break.

Thu, 02/16/2012 - 18:09 | 2167431 mayhem_korner
mayhem_korner's picture



maybe he was thinkin' limburger and fat-fingered...

Thu, 02/16/2012 - 18:18 | 2167460 Yen Cross
Yen Cross's picture

SHE? I love Bermuda Triangles.

Thu, 02/16/2012 - 21:57 | 2168028 Hulk
Hulk's picture

Don't get lost in there...

Fri, 02/17/2012 - 04:06 | 2168720 Phil Free
Phil Free's picture

That's what she said.


Thu, 02/16/2012 - 18:23 | 2167474 DaveyJones
DaveyJones's picture

oops, someone mentioned Lindberg on another post, guess it stuck. Damn, and I was hoping to write for Obama some day  

Fri, 02/17/2012 - 04:05 | 2168719 Phil Free
Phil Free's picture

Triple Lindy.


Thu, 02/16/2012 - 15:50 | 2166852 kato
kato's picture

"Best thing for him, really. His therapy was going nowhere."

Thu, 02/16/2012 - 15:53 | 2166859 daxtonbrown
daxtonbrown's picture

What if they'd just skipped the game of charades and defaulted the Greek debt two years ago, like everyone knew they would? The Greeks would be better off, maybe like Iceland.

Heaven help us when our debt comes due in the US. That will be after Greece, Italy, Spain and Japan have hit the wall. Splat. Maybe someone can tell me what happens when the reserve currency shatters? The central bankers have proven that they can kick the can a lot longer than anyone thought, but gravity has consequences. None of the numbers add up, not unemployment, not GDP growth. About the only hope for the little guy is to figure out how to Go Galt.

Thu, 02/16/2012 - 16:16 | 2166979 dracos_ghost
dracos_ghost's picture

They need the crisis to push for the master agenda. Let's not forget this is really a social engineering excercise with little to do about markets -- corporations are still loaded, equities vaulting back towards all-time highs. Megamansion crazes all over the place. Except for the poor sovereign schmucks. They need to suck it up.

It's global fiat, why the hell are there any debt covenants? Greece should print an equivalent amount of Drachma(call it a Euro peg with China as a precedent) and say "PAID IN FULL" and move on. No need to default.  Nope, TPTB want their pound of flesh.

This will all be magically resolved within the next 30 days with the destruction of the individual in the process. The human being will be officially categorized as debt collateral.


Thu, 02/16/2012 - 15:56 | 2166863 GeneMarchbanks
GeneMarchbanks's picture

Is this the same SocGen that thinks it's hedged in case of the Greek default?

Greece has already defaulted, now how about ShockGen? I'm sure they've been 'firewalled'.

Thu, 02/16/2012 - 15:53 | 2166868 Yen Cross
Yen Cross's picture

 Tyler was succinct. When " They" Tyler mentioned " English Law" , we all knew the inevitable.

   Cast a line and buy a ship, from the Baltic DRIP index. Onassis style!

Thu, 02/16/2012 - 15:55 | 2166876 Jlmadyson
Jlmadyson's picture

We here all know it is coming it is just a matter of what day at this point.

Thu, 02/16/2012 - 16:00 | 2166891 LouisDega
LouisDega's picture

Thats what she said

Thu, 02/16/2012 - 15:56 | 2166878 Shizzmoney
Shizzmoney's picture

I am going to feel so bad for those who lose their pension/401K (like my dad)...but not all.

I work next to an opulent, brattly, trust fund asshole who thinks he knows it all and constantly shits on OWS. 

I'm going to be double fist pumping when his 401K is worth as much as the lint in my pocket.

Thu, 02/16/2012 - 19:02 | 2167551 BlackholeDivestment
BlackholeDivestment's picture 

...Shizzy, cheers for the great and terrible day? I get what you really mean. I can see you reminding the Putz, ''Don't forget the laborers of the harvest ...DUDE!!!'', on his day of reckoning ...but, we must make sure that our offer does not seal the Putz and ourselves with the same contempt. They may try to escape their own lack of mercy but, we must remind them of their lack of forgivness now, in a manner which is not unbecoming, so when their time of revelation comes we will not be found wanting. We can't do that without mercy, we must be divested and charged with the power of humility. We should be able to discern the right image for the Putz now, so the last seed that we plant will rise within and the Putz will be convicted by the revelation ...before it's too late for us to claim our reward. Our treasure is not measured by their suffering. If it were, we would be equally yoked.

The gains of this market define the penalty put upon labor today, and the prophetic reality of the time at hand. This means, the Putz that accepts the mark of the beast today shall have the seal of the market beast, and they shall perish as treasure in the deep black hole. Lets make sure we do not get caught cheering the damnation of fools from the same bottomless trading pit. That's what will be done in Hell, which by the way is on Earth. The Earth is the flaming alter upon which the judgment of fools is rendered. Have no fellowship with the new world order Putz. The new world order is the ''secret hidden knowledge'' of the market and of the elder of man and Lucifer. This ''knowledge'' defines the offer of temptation given to the host, which must be corrupted in order for evil to enter therein,. The offer is ''you shall not surely die'' if you buy sell or trade Chairsatan and Loyds ''gods work'', lol. The work(s) define the global mark of market debt burning the returns of labor, returns which are required to sustain labor, which is the foundation for the global market to exist. The Whore of Babylon's power, and insider information, stems from contempt for labor and the market as a whole. We now see the global market is out of order because of the new world order which represents the globalist agenda.

Just remind the Putz that you care for selfish reasons. Lol. Remind them that the fruit of their offer shall bring judgment and the penalty of death and now is the time for them to hear and quickly consider the question  ''what is meant by the words the wages of sin is death''?

People are still working for a ''living'', lol, in a market that does not offer a rate of return for labor. Lol

                 ''The time for Patching it up is over''

...and the time of sealing the black hole is upon this generation. Have no doubt.

Fri, 02/17/2012 - 02:10 | 2168631 StychoKiller
StychoKiller's picture

Forgiveness does NOT include forgetting.


Fri, 02/17/2012 - 03:57 | 2168702 BlackholeDivestment
BlackholeDivestment's picture





           ...why, much less ''how'' would or could anyone forget the pain of mercy? Lol.


                    ...still hurts like hell and I'm not even bleeding at the moment

                                             like the child upon the cross

          in the battle field of the Suicide Vampire Squid of the Great Wal Mart of China 



Thu, 02/16/2012 - 16:25 | 2166890 Joebloinvestor
Joebloinvestor's picture

I predict that Greece will be given the money to prevent a March 20 default, but they will not get what they need.

The EU will flush a few billion away and buy more time, but Greece is toast IMO.

Thu, 02/16/2012 - 16:03 | 2166900 dead hobo
dead hobo's picture

Dude, I've been following this as well as possible and the tone today hints at the ECB accepting its role as the bitch of the debtor nations of the EU. I'm starting to  think they will engage in some creative money printing and turn into  the joke of Europe in order to save all creditors from pain today. What I can't yet figure out is the short term impact. The ECB will print as required, but be sneaky about it and pretent nothing is going on. The EU will support them. In a few years the euro will lack credibility and be laughed at. In the short term, will this be good for market traders or will the credibility loss start soon?

Thu, 02/16/2012 - 16:31 | 2167052 machineh
machineh's picture

In movie drama terms, the protagonist (Greece) can't die, or it spoils the plot.

So the sober-sided ECB goes Bensane on us?

It's a long shot. But I believe it because it's absurd!

Thu, 02/16/2012 - 16:04 | 2166906 DaveyJones
DaveyJones's picture

CNBC / Onion Headline: Dollar Getting No Respect Despite Stronger Economy 

Thu, 02/16/2012 - 16:49 | 2167132 Yen Cross
Yen Cross's picture

I like you Davey Jones. I pay attention! +1

Thu, 02/16/2012 - 17:23 | 2167261 DaveyJones
DaveyJones's picture

I can't erase this vision of CNBC sadist editors laughing up their headlines. When they get really good, they graduate to the State of the Union Address 

Thu, 02/16/2012 - 18:22 | 2167475 Yen Cross
Yen Cross's picture

 They graduate to the WORLD BANK! Demotions to the IMF are optional!

Thu, 02/16/2012 - 16:05 | 2166907 agent default
agent default's picture

Time for patching up was over in 2008.  They should have let the defaults occur back then, flush out the bad debt and the deadbeats, and then recapitalize the healthy parts of the system.  They refused to let a severe recession do its work back then, and played the rollover game.  Now it will be a total collapse.

Thu, 02/16/2012 - 16:49 | 2167128 victor82
victor82's picture

But the Banksters put Obama in power precisely to prevent that from happening. They wanted to keep the Fiat Gravy Train going as long as possible, under the illusion that debt-financed "growth" would return to the U.S..

It never did. Now they're fucked.

Thu, 02/16/2012 - 16:08 | 2166921 Mugatu
Mugatu's picture

Who gives a shit about Greece?  In today's algo-HFT driven markets, there is only one direction and that's up.  Stupid things like fundamentals, actual losses, and declining trade means nothing.  The only thing that means anything is how many millions of quarter penny quote stuffing trades can you make.

Thu, 02/16/2012 - 16:11 | 2166936 agent default
agent default's picture

That's precisely why the situation is so dangerous.  The market is supported by nothing material and the slightest disruption for whatever reason will trigger a total collapse. 

Thu, 02/16/2012 - 16:08 | 2166924 Eisenhorn
Eisenhorn's picture

ALL OF THIS is just theater for the masses while they loot they system.

There is a 100000000000000% chance that Greece CANNOT meet ANY of the requirements to avoid default.  They know it, we know it....they're just smart enough to steal everything before the house burns down.

The only thing happening is that the Banks and Sovreigns are looting the shit out of the system. 

This is NOTHING more than the 1% running through their version of LA after Rodney King.

Only this time LA is the world markets and the only one getting the shit beat out of them by the authorities is YOU.

Thu, 02/16/2012 - 16:09 | 2166930 RobotTrader
RobotTrader's picture

New 11-year closing highs on QQQ on deck, led by MSFT.

Where's the recession reported to be right around the corner by:


- Bob Janjuah

- Charles Biderman

- Charles Hugh Smith

- Rosie???

Thu, 02/16/2012 - 16:13 | 2166962 digitlman
digitlman's picture

The QQQ makes me want to PPP.

Thu, 02/16/2012 - 16:20 | 2166998 LouisDega
LouisDega's picture

Its in the report. Click the link below

Thu, 02/16/2012 - 17:07 | 2167208 lieutenantjohnchard
lieutenantjohnchard's picture

'tard, you forgot to add your hero ben "weak economy" bernanke to those talking recession. also, your slam on gold holders perfectly timed the gold low of the day this morning. i knew i could count on you to get it perfectly wrong.

robot trader: processing 1099's since 2011.

Thu, 02/16/2012 - 16:09 | 2166931 juggalo1
juggalo1's picture

Yeah right.  We can keep extending.  Yesterday was red but today more than makes up for it.

Thu, 02/16/2012 - 16:10 | 2166935 sabra1
sabra1's picture

just imagine when italy or spain follows in greece's footsteps, regarding rumour after rumour. just look at how high the markets rose on greece alone! neeeext!

Thu, 02/16/2012 - 16:18 | 2166987 Bunga Bunga
Bunga Bunga's picture

So what? Greece bankruptcy will start a rally in US markets. Already priced in, better than expected, QE3-deniers get killed a.s.o.

Thu, 02/16/2012 - 16:29 | 2167040 mktsrmanipulated
mktsrmanipulated's picture

so lets pose the question...greece defaults what happens to the euro...the ecb and eurozone lose a weak link ....does losing the geeks strngthen the euro ?  it should caus elosses at the ECB LTRO and EFSF so then what how does the unions gdp.... look the big problem is contageon thats it...if the bonds raiders start attacking italy and spain then comes an event baby

Thu, 02/16/2012 - 16:28 | 2167042 mktsrmanipulated
mktsrmanipulated's picture

fuck qe3 and fuck ben bernanke

Thu, 02/16/2012 - 16:34 | 2167077 Yen Cross
Yen Cross's picture

 Earnings season is winding down. The prints are less then spectacular. The Douche bag Banksters want qe3. It's an election year.

   The budget cap is going to be broken in September.  REALITY is your children and grand children. Tyler has " CLEARLY", stated treasury liquidations. Come on people? WAKE UP!

Thu, 02/16/2012 - 16:47 | 2167125 alfred b.
alfred b.'s picture


   It's hight time that all the so-called PIIGS countries turn the tables on their money-grubbing masters.   They ought to stand together and decide to default all together on the same day....let's say Feb 29th for historical purposes!  

   Then we would know who REALLY holds the hammer.



Thu, 02/16/2012 - 16:53 | 2167147 aerial view
aerial view's picture

Greece-let me help you out here and tell you how to save your people and their country: If you agree to the terms of the ECB there will be severe pain, you will give up sovereignty and will never free yourself from the parasitic elites. If you don't agree to the terms of the ECB, there will also be severe pain but you will remove all debt  through default, retain your sovereignty and free yourself forever from the chains of the parasitic elites. Most importantly, you will show the world masters that no people or country will remain slaves in perpetuity--this is thekey power you hold--it will scare the shit out of them due to the likely contagion effects on other countries and as a last resort you may be able to settle for pennies on the dollar if you do not want to leave the EU: this is how the game is played!  

Thu, 02/16/2012 - 17:04 | 2167198 Omen IV
Omen IV's picture

yes you are right  - assuming it was a referendum by the people - this is a cram down where the politicians  / management gets paid to screw the country  and convert to London rules

how can these politicians live in Greece after this?

Thu, 02/16/2012 - 17:12 | 2167226 Piranhanoia
Piranhanoia's picture

to paraphrase;  We have screwed the old hellenic corpse till there isn't anything left.  Lets move on to new victims while they are still stupid enough to let our bank rape them too.

Thu, 02/16/2012 - 18:11 | 2167444 chump666
chump666's picture

Expected meltup via HFTS, now back into it's tight range.  Good sign?  No a omen, May 2011 highs are now tested (before the market went bear in Aug 2011).  Europe needs to show the money, except for the ECB insanity, the EZ banks will have to start to make some cash.  The EZ banking system is a zombie backstopped by the ECB.  But zombies are dead.  The thing is Europe, in a fiscal sense, is dead too.  The best bit, Germans get hit with EUR/Oil heading over 80.  Should start to freak them out, that and China won't be ordering that many BMWs, Mercs.  Germany will get frisky now with this Greek bullsh*t insanity.

Also this is profit taking now, panic sell happened on 15th and now a panic buy on the 16th. Markets fail to make new highs, should see short positions gathering.

Fri, 02/17/2012 - 00:05 | 2168382 number cruncher
number cruncher's picture

This is a great article that points to the core of the current problem. Well done Tyler I would buy you a beer if I could. I think its curtains and the market will realise this next week, there might be the algo melt up, but the writing is most deifintley on the wall so if there is no response by late next week I will be scratching my head if there are any humans actually trading the market. You can see why the ECB swooped in today to garantee they will be repaid their 30 billion EUR in drachma before anyone else could get in there.


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