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"Solidarity Has Its Limits" As German FinMin Snubs Geithner And Downplays Levered EFSF

Tyler Durden's picture




 

In a speech given in Berlin, the ever-vocal German finance minister Wolfgang Schaeuble appeared less than vociferous about the new levered EFSF plan and further lambasted Geithner's 'plan' in as politically correct manner as he could. Bloomberg headlines include:

*SCHAEUBLE SAYS `WILL NOT SPEND OUR WAY' OUT OF CRISIS

*SCHAEUBLE SAYS `SOLIDARITY HAS LIMITS,' REQUIRES RETURN EFFORTS

*SCHAEUBLE SAYS `IMMEDIATE FISCAL REFORMS ARE OF THE ESSENCE'

And the kicker in response to questions on Geithner, the pithy response:

*SCHAEUBLE SAYS EASIER TO GIVE ADVICE THAN TAKE IT

He further seemed to back away from the idea of any levered EFSF strategy (though not explicitly) with the following comments:

*SCHAEUBLE SAYS INCREASING EFSF WOULD DAMAGE SOME AAA RATINGS

*SCHAEUBLE SAYS WILL ENHANCE EFSF IN MOST EFFICIENT WAY IF MUST

*SCHAEUBLE SAYS MONETARY POLICY `NOT THE WAY' TO SOLVE EURO WOES

*SCHAEUBLE SAYS `NO COMFORTABLE WAY OUT' OF CRISIS FOR EUROPE

*SCHAEUBLE SAYS EVERY STATE MUST PREPARE OWN BANK BACKSTOP PLANS

*SCHAEUBLE SAYS ASKED FOR BANK BACKSTOP PLANS FOR NEXT ECOFIN

And yet we keep squeezing higher on the hope that extending this crisis another few years will solve everything.

 

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Tue, 09/27/2011 - 08:45 | 1714419 Smithovsky
Smithovsky's picture

oh nein he di'int

Tue, 09/27/2011 - 08:48 | 1714447 Popo
Popo's picture

Oh noes.  Timmy's going to get angwy.

Tue, 09/27/2011 - 09:16 | 1714551 heyligen
heyligen's picture

Look at it in Timmy's way: overspending 1400000000000 of other people's money to save his friends, hoping that he will get a little bit of that back in return later. That will make Schaeuble look like a pauper. He is just immune to what these paupers say...

Tue, 09/27/2011 - 11:01 | 1714905 trav7777
trav7777's picture

it wasn't OPM...it was debt.  And it was created from thin air

Tue, 09/27/2011 - 14:03 | 1715550 covert
covert's picture

the german economy is doing much better than what is generally known. we have the inside track.

http://expose2.wordpress.com

 

Tue, 09/27/2011 - 08:43 | 1714427 warchopper
warchopper's picture

BUT, what does David Hasselhoff have to say about all of this? :)

Tue, 09/27/2011 - 09:00 | 1714487 bigdumbnugly
bigdumbnugly's picture

david's had this feeling about it all along...

ooga ooga ooga cha cha

http://www.youtube.com/watch?v=PJQVlVHsFF8

Tue, 09/27/2011 - 08:43 | 1714428 cossack55
cossack55's picture

Das Geithner ist eine grosse schweine und eine megadope.

Tue, 09/27/2011 - 08:55 | 1714470 swissaustrian
swissaustrian's picture

Der Geither soll vor seiner eigenen Tür kehren... (=mind his own business)

Tue, 09/27/2011 - 09:10 | 1714525 TradingJoe
TradingJoe's picture

recht has baby so isses!

Tue, 09/27/2011 - 09:09 | 1714520 TradingJoe
TradingJoe's picture

"Der Geithner ist ein grosses Schwein und ein MegaDope" there fixed it for ya!

Tue, 09/27/2011 - 08:43 | 1714430 Fips_OnTheSpot
Fips_OnTheSpot's picture

make it stop! Bored to death w/ this plot.

 

Default! Default! Default! NOW!!

Tue, 09/27/2011 - 08:46 | 1714440 HD
HD's picture

You know - starting to like those Germans...they actually LEARN from history.

Tue, 09/27/2011 - 08:52 | 1714465 swissaustrian
swissaustrian's picture

If Merkel had any backbone, maybe. But she doesn´t. She constantly retreats from her former point of view. This is all just rhetoric to get the best possible compromise for Germany. That´s what the EU is all about.

Tue, 09/27/2011 - 08:49 | 1714445 buzzsaw99
buzzsaw99's picture

Shall I translate?

 

*SCHAEUBLE `WILL SPEND OUR WAY' OUT OF CRISIS

*SCHAEUBLE SAYS `SOLIDARITY HAS NO LIMITS,'

*SCHAEUBLE SAYS `IMMEDIATE FISCAL REFORMS WILL NEVER BE IMPLEMENTED'

Tue, 09/27/2011 - 08:56 | 1714457 turicum
turicum's picture

Thanks for the translation. I knew the details were hidden between the lines.

Tue, 09/27/2011 - 08:49 | 1714452 SwingForce
SwingForce's picture

Einstein said, "Genius has its limits".

Tue, 09/27/2011 - 08:49 | 1714456 THE DORK OF CORK
THE DORK OF CORK's picture

Well if you follow the logic of this mans argument credit deposits & bonds need to be defaulted on - as spending new money into the system keeps these malinvestments alive.

But I suspect Wolfgang will not follow that path - I would prefer to see a mass default on the shadow bank sector in Europe and thus reduce leverage but the average German in a position of power wants it all to just go away  - Germans despite their exterior projection of reason are quite insane people.

Tue, 09/27/2011 - 09:34 | 1714617 schadenfreude
schadenfreude's picture

The problem is not the amount of debt that has to be rolled, but the thinking, that this can going on forever. There are econmical structural changes needed to cure the debt problem. Without EU standards on retirement, healthcare and taxes there is no solution other then more debt. How big do see the chance, that Ireland is going to give up its tax advantage? There you go.

Tue, 09/27/2011 - 11:42 | 1715037 THE DORK OF CORK
THE DORK OF CORK's picture

There you go what ?

I would be happy to see a grand deal to get rid of the corporate Tax in exchange for a massive reduction in bank debt - but you don't get it - Irelands executive is not in control of anything - they do what they are told , they always have - if they want us to pay this  debt they must keep the Knights templer corporate colony system in place -otherwise the debt is destroyed as turnip fields cannot service this debt.

I have been to too many places in Europe where the Hospitallers & Templers create a church / fort system divorced from the general population and the wild mountain men so that they can continue their trading activities - I know how the system works at its most basic level - and Ireland is one of the most extreme examples of this old old practice.

www.youtube.com/watch?v=h2LOI0NMNy4

 

Tue, 09/27/2011 - 08:51 | 1714461 Lord Welligton
Lord Welligton's picture

And yet we keep squeezing higher on the hope that extending this crisis another few years will solve everything.

 

I think this is the ultimate delusion of the political leaders.

The debt crisis must be resolved within months not years.

They then must move on the the structural unemployment crisis in the EU and the USA.

Tue, 09/27/2011 - 08:54 | 1714468 jtmo3
jtmo3's picture

Means nothing. All show. Wait and it shall come to pass one way or another. It has been proclaimed and sold to the markets. No turning back now.

Tue, 09/27/2011 - 08:54 | 1714472 the not so migh...
the not so mighty maximiza's picture

Lets all keep talken till we all die, there problem fixed or just not our problem anymore.

Tue, 09/27/2011 - 09:21 | 1714569 SheepDog-One
SheepDog-One's picture

Yep thats about it, another day of marveling at our captors ever more insane actions. I may as well just pack up now and move to Bora Bora and build a palm frond hut, what would be the difference?

Tue, 09/27/2011 - 08:55 | 1714473 Byte Me
Byte Me's picture

SCHAEUBLE ??

For eff's sake -- Just another wheelhorse pol HACK.

The Germans will do as they are told -- or it'll be off to the sausage factory, liebelings.

(And don't try any of that "German Army" crap here either, the DE army is a bigger joke than the Italian one. Why, in Afgani, they HAVE to be posted to districts where there's no trouble.)

Tue, 09/27/2011 - 08:59 | 1714482 edotabin
edotabin's picture

Let that  stupid ass eat cake.  He is probably the one of the top cronies in this. New crap out of his mouth every day.

Shut up! They should bring someone new to the stage for variety at least.

 

 

Tue, 09/27/2011 - 08:59 | 1714483 Debtless
Debtless's picture

So when does this finance minister announce his resignation?

Tue, 09/27/2011 - 09:00 | 1714485 Kina
Kina's picture

`WILL NOT SPEND OUR WAY' OUT OF CRISIS'

Of course this is impossible - spending only expands crisis. Germans can do elementary math.

`NO COMFORTABLE WAY OUT' OF CRISIS FOR EUROPE

You are all quite fucked.

EVERY STATE MUST PREPARE OWN BANK BACKSTOP PLANS

He seems to be saying..'every man for himself' aaghhhhhhhhh

Tue, 09/27/2011 - 09:24 | 1714577 supermaxedout
supermaxedout's picture

This is exactly his message. And this is a serious man. Believe me I observed him for many many years. He was  Helmut Kohls closest and most influential adviser during Kohls whole career. Now he is in the same poition for Angela Merkel. A sharp mind and a tough fighter even he is in a wheel chair after he was shoot down 20 years ago.

All in the boats now hurry-up we are sinking. 9,8,7,6,5,4,3,2,1 zerohedge ignition

Tue, 09/27/2011 - 09:02 | 1714493 Smiddywesson
Smiddywesson's picture

All the German politicians professing an unwilliness to bail everyone out sounds to me like Brer Rabbit "begging" Brer Fox not to throw him in the briar patch.  They know they want it, but they have to play along for the crowd.

You have to print to kick the can, so we all print.

Tue, 09/27/2011 - 09:19 | 1714560 SheepDog-One
SheepDog-One's picture

Yea well they now see if they make a wrong move, the people will now come and kill them.

Tue, 09/27/2011 - 09:04 | 1714498 Kina
Kina's picture

There is NO way out. None at all that doesn't mean some sort of economic disaster.

It is indeed a inexorable growing cancer. And the only cure for cancer - cut it out then poison the body with chemotherapy. The need to do the economic equivalent of this.

Tue, 09/27/2011 - 09:16 | 1714548 kurzdump
kurzdump's picture

The current cure seems more like: eat as much as you can, maybe youre gaining weight a a faster pace than the cancer grows and after a while the cancer wont matter anymore.

Tue, 09/27/2011 - 09:24 | 1714579 Motley Fool
Motley Fool's picture

Actually... there is a way out. Just depends who we are talking about, what that way is. For the USA for example it's HI.

Tue, 09/27/2011 - 09:09 | 1714508 anynonmous
anynonmous's picture

*SCHAEUBLE SAYS ( laughing under his garlic and bratwurst breath)  SOME OF YOU WICHSERS  ACTUALLY BELIEVE MY BS"

Tue, 09/27/2011 - 09:09 | 1714519 AngryGerman
AngryGerman's picture

Timmy should be scared of him, the guy can do a drive-by shooting without a car

Tue, 09/27/2011 - 09:13 | 1714539 Fips_OnTheSpot
Fips_OnTheSpot's picture

And he knows shooting! Just he was on the wrong end of the gun last time...

Tue, 09/27/2011 - 09:10 | 1714526 DCon
DCon's picture

The goons on CNBC think it is funny that he said Geithner's plan in "silly" when Geithner is obviously God.

 

 

Tue, 09/27/2011 - 09:17 | 1714555 SheepDog-One
SheepDog-One's picture

Hoe DARE they snub and mock The Jeethner??

Tue, 09/27/2011 - 09:13 | 1714537 TradingJoe
TradingJoe's picture

Friday is BONUS DAY! Capisci?!

Tue, 09/27/2011 - 09:13 | 1714541 topcallingtroll
topcallingtroll's picture

Hurry up.

I wanna watch Greece burn.
Socialism always fails when u run out of other people's money.

The world needs a good lesson every once in a while because people forget.

Tue, 09/27/2011 - 09:17 | 1714547 DormRoom
DormRoom's picture

there seems to be two exit strategy at play: Germany vs. the rest.  But Germany hasn't shared her exit goals , probably because there are internal divisions to be resolved.

 

What is clear is that Germany seems to adhere to a form of European exceptionalism, which is inconsistent with the ideal of a European project.

Tue, 09/27/2011 - 09:16 | 1714549 SheepDog-One
SheepDog-One's picture

The daily Carrot and Stick puppet show.

Tue, 09/27/2011 - 09:16 | 1714550 Tense INDIAN
Tense INDIAN's picture

this is the site of the  trader from BBC ::--http://www.leadingtrader.com/about/

Tue, 09/27/2011 - 09:25 | 1714585 turicum
turicum's picture

Error establishing a database connection

Trading high volumes do not necesseraly go hand in hand with high network volumes.

Tue, 09/27/2011 - 12:40 | 1715250 hbjork1
hbjork1's picture

Yes, but what if someone actually enjoys living in an occupation where the laws of natural science are used to produce something.  Trading is only about outsmarting the other guy without having to talk to him. 

Tue, 09/27/2011 - 09:20 | 1714562 Caviar Emptor
Caviar Emptor's picture

Germany breaking ranks 

Tue, 09/27/2011 - 09:23 | 1714572 SheepDog-One
SheepDog-One's picture

Thats got to be 'good news' somehow or other, judging by the mockery known as 'futures'.

Tue, 09/27/2011 - 09:25 | 1714582 I am a Man I am...
I am a Man I am Forty's picture

mind your own fucking business geithner, you wouldn't give a shit if you didn't give so much money to european banks

Tue, 09/27/2011 - 09:28 | 1714598 supermaxedout
supermaxedout's picture

 

EVERY STATE MUST PREPARE OWN BANK BACKSTOP PLANS

He seems to be saying..'every man for himself' aaghhhhhhhhh

 

This is exactly his message. And this is a serious man. Believe me I observed him for many many years. He was  Helmut Kohls closest and most influential adviser during Kohls whole career. Now he is in the same position for Angela Merkel. A sharp mind and a tough fighter even he is in a wheel chair after he was shoot down 20 years ago.

All in the boats now hurry-up we are sinking. 9,8,7,6,5,4,3,2,1 zerohedge ignition

Tue, 09/27/2011 - 09:39 | 1714626 oogs66
oogs66's picture

he will soon be kicked out and relegated to posting on zh :(

Mon, 10/17/2011 - 08:24 | 1780836 maddogs
maddogs's picture

And the Battle of the Banks continues!

AND IN THIS CORNERRRR, WE HAVE..

In this corner,,More positioning,,, as Central Banks vie for opportunity come out ahead, Ahead of other ruling Centrals, BIS systems and International Funds.

Iiiiiinnn the other Cornerrr,,,, Politicians, Heads of States and other puppets hoping to maintain power, position and delay the Inevitablllllle!

Todays event brought to you by ICE and partners, where you can sell opaque offsetting dirivitives and justify more loans from your Central Bank, All without the world ever knowing you hold illiquid paper on the asset accounting side and a buttload of debt on the exposure side!

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