Suddenly, Nobody In Europe Wants The ECB Bailout

Tyler Durden's picture

It took the ECB a year of endless behind the scenes Machiavellian scheming to restart the SMP program (which was conceived by Jean-Claude Trichet in May 2010, concurrent with the first Greek bailout). The markets soared with euphoria that this time will be different, and that the program which is a masterclass in central planning paradox, as it is "unlimited" yet "sterilized", while based on "conditions" none of which have been disclosed, and will somehow be pari passu for new bond purchases while it retains seniority for previous purchases of Greek and other PIGS bonds, will work - it won't, and the third time will not be the charm as we showed before. Yet it has been just 48 hours since the "bailout" announcement and already Europe is being Europe: namely, it turns out that nobody wants the bailout.

On one hand there's Germany for obvious reasons - not only are they footing the cost, but it is for them that the threat of an inflationary spike as a result of "unlimited" bond buys is most acute. But on the other, just as we predicted all along, are Spain and France, the biggest beneficiaries of the bailout, and whose bonds soared on expectations the ECB may buy them, who overnight have had a change of heart and say they never actually needed the bailout. Why? Because its politicians have suddenly had a change of heart and realize they will be sacked the second they hand over sovereignty over to the Troika or whatever supernational entity is in charge of the country following the submission of the bailout request.

More importantly, and as explained before, as long as the yield on the bonds of insolvent European countries is sub 8%, not one country will demand a bailout. And as long as these countries reap the benefits of cheap rates, the policies of pseudo austerity will continue (as a reminder, nobody in Europe has actually implemented austerity), where nothing changes, where budget deficits continue to pile on, where sovereign debt continues to soar, where politicians continue making the same flawed policy choices, and where the European slow-motion trainwreck continues, only with a brief delay in the final inevitable outcome.

By now everyone knows about the ECB party that sent US stocks to 4 year highs. Now comes the aftermath. From the NYT:

Greeted with initial fanfare by investors and economic officials, the unlimited bond-buying plan that the European Central Bank president, Mario Draghi, announced Thursday ran into immediate political problems in the crucial countries of Germany, Spain and Italy.


In Germany, despite Chancellor Angela Merkel’s support for Mr. Draghi and the independence of the Central Bank, political and news media reaction was scathing, with accusations that the bank, in seeking to stabilize the euro currency union, was subverting its mandate to fight inflation and forcing debt upon euro zone members.


“A Black Day for the Euro,” “Over the Red Line” and “Pandora’s Box Opened Forever” were some of the German headlines, with the normally sympathetic Süddeutsche Zeitung headlining an editorial: “The E.C.B. Rewards Mismanagement.” Even the German Bundesbank, officially part of the European Central Bank, put out a statement commenting acidly that the plan was “financing governments by printing bank notes.”

Here is where it gets funny:

At the same time, the two intended beneficiaries of the Draghi plan — Spain and Italy — expressed reluctance to ask the bank for help, even if both might eventually have little choice but to seek aid. The governments in Madrid and Rome apparently fear the political impact at home of bowing to whatever demands for harsh economic policy changes might come with the aid.

And just as we predicted before...

They seem afraid that the medicine might prove worse than the disease, because Mr. Draghi made it clear that there would be no bottomless well of money made available without a program of greater spending discipline.


Those who did everything to have the E.C.B. help now say they don’t want it,” Ferruccio de Bortoli, editor in chief of the newspaper Corriere della Sera, said in a Twitter message. “Speculation will play on this contradiction.”


The disjunction between how officials seek to placate the lightning-fast markets and the reluctance on the part of the public and politicians to make further sacrifices and move at more than a glacial pace highlight why it has proved so difficult for Europe to overcome the challenges that still threaten to tear apart its 17-nation currency union.

All of this is just as we explained over a month ago: "In Order To Be Saved, Spain And Italy Must First Be Destroyed." We also explained why this will not happen, and that instead of being saved, Spain and Italy will ultimately be destroyed, by appearing to be saved first: as Mario Draghi kindly obliged us on Thursday. And all with the central-planners' and stats quo's blessing.

The simple reality is that already the grand plan is fizzling, which was to be expected. After all politicians are involved. Recall that Goldman, who basically force fed its alum Mario Draghi the play by play (after leaking the ECB playbook hours in advance) now "predicts" (and by predicts, we mean demands) that Spain demand a bailout as soon as next week. Well, Spain PM Mariano Rajoy, who promised Spanish banks will never need a bailout one week ahead of the Spanish bank bailout announcement, already is digging his feet in. As Spanish El Economista write, Rajoy is "tempted" to delay the Spanish bailout request until after the Galician elections, i.e., until October 21. At the earliest. In other words, while the market has already front-ran the Spanish bailout demands, suddenly Spain will conduct at least 6 auctions between now and October 21, during which time bond buyers will be praying that eventually Spain will demand a bailout. Ironically, it is these same "bond buyers" who swallowed hook line and sinker the plan that Draghi et al laid out for them, namely to assume a bailout, and buy bonds, when by doing so, a bailout becomes unnecessary. Did we say bailout? We meant trap.

So what happens in the meantime? Well, Spanish bonds can languish in the 6%, 5%, or even 4% range, which in turn will embolden the insolvent Spanish government to issue even more debt, thus making its fiscal situation even more untenable (recall the Spanish financial system is broke for one simple reason: too many (soaring) bad loans predicated by the endless collapse in the Spanish housing market). And issue bonds it will have to: recall that as we first explained, and as Nomura subsequently understood, Spain is on the verge of running out of cash!

But suddenly now that the market pretends all is well, following the most recent bout of central bank intervention, no Spanish politician feels the urge to sign their own career death warrant and request that the ECB funds these purchases which Spain simply will not have the money for. Instead, the theater that "all is well" will continue until Spain does run out of cash (the record outflow in Spanish bank deposits makes that a certainty) at which point the transition chaos will be unprecedented as instead  of arranging for an orderly transition, the panic in the Spanish government will be epic. Even the NYT now understands this dynamic:

Spain must pay back 20 billion euros, about $25.6 billion, in bond redemptions in October. And some analysts suggest that Mr. Rajoy will need to seek help to satisfy half of Spain’s 180 billion euro financing needs (about $230 billion) over the next year. “The Spanish fear is that they become another Greece — that they will have to chop off their right arm for a blood transfusion,” said Mark Cliffe, chief economist at ING Bank in Amsterdam....Mr. Rajoy is already losing popularity rapidly, and no one wants further political instability in Spain to add to continuing anxieties over Greece.

And this is only Spain. Throw Italy into the mix, which the NYT admits has been even worse at implementing reforms, and one can see why even the once intelligent bond market has demonstrated surprising stupidity with its ramp in peripheral bond prices last week (which really has been just a massive short squeeze).

But the piece de resistance, which readers of Zero Hedge know too well about, is that while jawboning will continue to yield results as long as reality finally demands an intervention, and Spain running out of cash will be just such an jawboning-event horizon, is that once the ECB is forced to begin buying, as up to now nothing has actually been done by the ECB which has merely taken rhetoric, promises and threats to a next level, it is all downhill from there:

There is a further uncertainty about the survival of the euro zone, which the Central Bank is mandated to defend. Once the Central Bank loads up further on Spanish and Italian bonds — it has already bought more than 200 billion euros ($256 billion) of European bonds, including 50 billion euros ($64 billion) from Greece — it will find it very difficult to stop its bond buying even if countries do not keep to their promises of reform. To do so would be a form of suicide, because it could set off market panic and force countries to exit the euro, beginning a process with no clear end.

Yesterday we explained why the Fed will do everything in its power to avoid enacting more LSAP-based QE (it simply does not have the capacity for the kind of massive program that everyone expects, and even an "open-ended" monetization will force everyone to do the math). Today, we learn why it is the ECB that also will do everything it can to not hit the buy button. The biggest paradox is that up to now, the fear of central banks, which is there in part due to their (rapidly dwindling) credibility, is what forced investors to "not fight the Fed/ECB"... and the banks took advantage of this by not doing anything, but merely talking. The time for talk is over, and for one reason or another, the time for action has arrived. Such action will very quickly demonstrate that the central-planning emperor was, indeed, naked all along, and the ramp across all risk assets was for naught.

It also means that the next time when the central banks attempt a comparable jawboning of risk, they will be taken far less seriously, if at all. At that point one may expect the PBOC to finally admit just how much gold it has acquired in the past 4 years, and that anyone who wishes to give a totally new and still quite credible monetary authority the chance, is invited to do so.

* * *

P.S. The initial phrasing of this article's title was "Suddenly, Nobody Wants The ECB Bailout." We then added "In Europe" because there is at least one person in the US who is absolutely delighted by the ECB "bailout." The US president.

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Enneadeka's picture

Right on cue......Spooky dude Soros weighs in on Germany's role:

Cult_of_Reason's picture

Germany is so damaged by the single currency that it can no longer pay for the eurocrisis.


Charles Dumas of Lombard Street Research (an independent London firm of economic analysts):


"It is a myth that Germany can hold the euro together simply by subsidising Club Med, while the Mediterranean countries adjust their finances. Their savage fiscal deflation is slashing spending and income, and hence tax revenues, so that budget deficits scarcely improve.

Ordinary Germans have not had much economic joy over the past 13 years, despite the drum-beat of propaganda about Germany’s economic success, financial strength, etc. The reason is simple: such success and strength as there is, they have paid for, and continue to do so. This has been done not just without reward, but with substantial penalty, compared to other countries’ citizens.’

Mr Dumas then shows a chart illustrating increases in real personal disposable income per capital since 1998 for citizens of Britain, America, Germany, France, Italy and Spain. The Germans are second from the bottom. Only the Italians (whose per capital disposable income has actually fallen in this time) have gained less than the Germans. ‘It does not require a long look at the chart to see that ordinary Germans have plenty to complain about.’

Mr Dumas sums up his findings this way: ‘It is a myth that the Germany economy has gained from euro membership. Its growth has decelerated. Its growth of productivity has halved. Its citizens have accepted severe wage restraint without the former benefit of a rising currency, leading to negligible gains in consumer welfare. The undervaluation granted by their wage restraint has benefited producers artificially, and weakened the incentive to cut out waste – hence lower productivity growth."

machineh's picture

If TARGET2 were listed on the Deutsche Boerse, its superb growth rate would put Apple to shame.

Go GO, Draghi B. Goode!

Cult_of_Reason's picture

Dumas: 'Without euro exit, Germany will soon be in big trouble'

A new analysis by the totally excellent economist Charles Dumas of Lombard Street Research has just dropped into my inbox. It suggests Germany should not, perhaps cannot, afford the euro.

The report is a meaty 35 pages, so for now I'll just give you the summary. I may be able to write more at the weekend.

According to Dumas:

Eurosymbol wikiIt is a myth that the German economy has gained from euro membership.

Its growth has decelerated. Its growth of productivity has halved.

Its citizens have accepted severe wage restraint without the former benefit of a rising currency, leading to negligible gains in consumer welfare. The undervaluation granted by their wage restraint has benefited producers artificially, and weakened the incentive to cut out waste – hence lower productivity growth.

It is a myth that Germany can hold the euro together simply by subsidising Club Med, while the Mediterranean countries adjust their finances. Their savage fiscal deflation is slashing spending and income, and hence tax revenues, so that budget deficits scarcely improve.

Only with reversal of their excessive relative cost build-up vis-à-vis Germany can growth return. But without depression in Club Med that can only occur within the euro if Germany accepts a wage/price inflationary spiral, as well as prolonged subsidy payments.

Recent recovery, dependent on grotesquely distorted Chinese policies, is subsiding, so overheating and inflation (which Germans anyhow hate) could require large budget deficits.

Alongside major understatement of the unavoidable disasters of keeping the current euro membership goes the myth that leaving the euro would make Germany seriously uncompetitive and unable to grow.

German consumers need the lower import costs that a rising currency would bring, to raise their spending power without wage inflation, and German businesses need the discipline of a higher real exchange rate to enforce productivity gains.

Without euro-exit, Germany will soon be in big trouble. With it, growth can return.

Oh regional Indian's picture

OT, but only just, really.

Canada F'kin loses it.

Or rather proves once and for all that it IS truly controlled by zio-puppets... Clearly one little step for a foolish nation... ill-winds indeed.


Canada closed its Tehran embassy on Friday and ordered Iranian diplomats be expelled, in a damning severance of ties in which it accused the Islamic Republic of being the biggest threat to world peace.





Pseudo Anonym's picture

the additional irony to this:

An estimated 120,000 people of Iranian origin or descent live in Canada, according to official 2006 census data, and thousands of their relatives in Iran visit them every year.

is that the Bruce Nuclear Power plant in Tiverton, ON ( ) employs hundreds of Iranians that can hardly speak english; figure that out...

btw, those indian babes in the right hand column of your link are bloody hot..especially Alia Bhatt

FranSix's picture

Oh well, there goes all the hashish.

Slack Jack's picture

Oh regional Indian says: "Canada F'kin loses it. Or rather proves once and for all that it IS truly controlled by zio-puppets..."

Apparently, the Canadian Prime Minister (Stephen Harper) is a Jew.

Slack Jack's picture

“As long as I am Prime Minister, whether it is at the UN or the Francophonie or anywhere else, Canada will take a stand (of unwavering support for Israel) whatever the cost (to Canada).”

Stephen Harper; November 08, 2010.

Oh regional Indian's picture

Hmmmm..... I suppose that really sez it, doesn't it?


Slack Jack's picture

Yeap, sez it all;

(Canadian Prime Minister, Stephen) Harper raised concerns about the anti-Israeli movement even at universities.

(Canadian Prime Minister, Stephen) Harper said while steps have been taken at home to combat anti-Semitism, the fight must taken offshore. “We must be relentless in exposing this anti-Semitism for what it is,” he said.

Yeap; Canadian PM, Stephen Harper, is a Jew.

GetZeeGold's picture



The CDC has released the following statment...


These zombies don't seem to be thinking rationally.


If you find yourself surrounded....just sit tight and wait for FEMA.


Radical Marijuana's picture

Canada is particularly paradoxical due to having lots of natural resources, compared to its population size. Therefore, being better off than most other countries enables Canada to be one of the worst countries in the world, as far as sublime, abstract, politics goes. BECAUSE the material things are so good, the social and political things are enabled to get worse.  Canada has both resources and technology, but also still one of the most colonial systems on the planet, with all that entails. Relatively speaking, the Prime Minister of Canada, in a majority government, has far more power than the American President. In the past, the Prime Minister of Canada has tended to be a relatively friendly dictator. Now that is no longer true.  Canada is doing more and more of what it always was, but faster than ever. Canada is catching up to the rest of the world, as fast as possible. Canada used to have a low level of income inequality. That has become a medium level, and the rate of change to become highly unequal is faster than almost anywhere else. With more drug war at home, and more foreign wars abroad, etc., Canada is rushing towards becoming integrated into the global system, which means the old balance the distribution of ownership of what the poor own compared to what the rich own, which was roughly 25 to 75, is headed towards 1 to 99, as fast as possible!

The whole world is a globalized, privatized, runaway fascist plutocracy juggernaut, dominated by an Anglo-American (Zionist) empire. Canada was always part of that. The only difference is that is picking up speed, faster than ever!  Canada, meanwhile, paradoxcially continues to be one of best off countries, from a material point of view, which continues to enable it to be one of the worst from the sublimely abstract sociopolitical points of view. Since Canadians are relatively comfortable, they are also some of the most brain dead sheeple on the planet, whose sociopolitical systems are the most hypocritical and unbalanced. Canadians never noticed that much before, BUT, they are just starting to.

MEANWHILE, the paradoxes of the ECB bailouts are expressions of the overall psychotic breakdowns of the established systems. Nobody wants the insanity that they are stuck inside. However, it is practically impossible to get out of that situation.


Everywhere expresses that differently, but the basics are the same. Since it is practically impossible for these systems to admit the basic truths about their realities, every "solution" put forward is always just more INSANE bullshit, that nobody wants. The runaway system of solving the problems of too much debt with even more debt, on an even larger scale, is not something that anyone wants. However, they are all stuck inside of those established systems anyway.

These systems are headed towards psychotic breakdowns, which is the inevitable end game of the triumph of huge lies controlling civilization. FRAUD KINGS ARE INSANE. None of the possible social psychiatry inside of that situation is working!

Therefore, we are headed towards psychotic breakdowns, and Canada breaking off diplomatic relations with Iran, while its government spouts all the Zionist absurdities for why, is just another little step towards an utterly irrational world war.  Unfortunately, that appears to be the only possible real outcome, which is what most people want the least, but which is what they most probably will get, since they otherwise refuse to face any of the fundamental facts about human ecology, and saner political debates are therefore practically impossible!

We are living inside of a Bizarro Mirror World Fun House, where everything is distorted and backwards, because the biggest bullies' bullshit became the dominant social stories controlling almost everything we do. Canada is just another example of that runway system, which was always there, but which relatively suddenly has become more noticable than ever before.

dogbreath's picture

+1 good post.  Can't figure out wh Bob Rae is intrim leader of the Lib's

Pseudo Anonym's picture

not anymore

Canadians are relatively comfortable, they are also some of the most brain dead sheeple on the planet, whose sociopolitical systems are the most hypocritical and unbalanced.

with the housing insanity just starting to collapse in vancouver, toronto, montreal, and soon in all  provinces, plus exports of raw mat'l nosediving, the ignorant canadian smile is being wiped off their face as we speak..

Haole's picture

Personally I can't wait for all the pompous grins to turn to furled brows and shattered realities.  I'd like to see bodies dropping from high places actually, making walking down the sidewalk a dangerous proposition.  I've downsized and took profits on my primary residence twice over the last seven years to prepare for this (among other things) and am still surrounded by narcicistic assclowns leveraged up to their eyebrows.  Even the lap dogs they take for a shit on the boulevard have smug faces and self-entitlement complexes... and we're governed by a bunch of zio-pandering sucklers to boot.  Sometimes I muse that it would be better to be an American because at least a segment of the population has a few synapses firing and is geopolitically aware of the real deal.  Canada has become a sick joke of it's former self in my lifetime.  Thank-you Mark Carney for setting-up a generation or two of stunned cunts for a lesson they'll never forget.  Your mentors will be proud.  Let the cull begin because I for one am ready for blood in the streets.  


Bay of Pigs's picture

Haole, now there's a message that will be well received in Canada. LOL.

That Loonie @ $1.02 hides lots of problems doesn't it? Half the tourists in Maui now are Canucks, maybe higher. They are spending like drunken sailors (Californians) over there buying up RE with all their "equity".

Oh regional Indian's picture

Very well said all arond RadMar. Shades of what you've said is happening all over the world now.

Circling the drain...


Bogdog's picture

What we have here is the frustrated ravings of a jew-hater, still pissed no one ever sent him his sequel to "The Elders of Zion". Try opening the windows in your fetid basement and let out some of that toke smoke. It's made you loony.

Haole's picture


Re:  "OT, but only just, really.

Canada F'kin loses it."

I don't know who would down vote you for saying what you did but take it as a compliment because apparently they are fucking imbeciles.  Thanks for the link.

philosophers bone's picture

Canadians are just getting the fuck out before people die. Canada has always been a little queasy about that. Clearly they have been forewarned of forthcoming military action and are just preparing. Canada has no choice or influence in this.

Oh regional Indian's picture

Canada is a highly influential nation.

Think of the role it had in the "prohibition", back in the day. Mafia rules. Guess who rules the mafia? 

Canada is Zio land, one just needs to look at the case of Earsnt Zundel.


Randall Cabot's picture




The Purple Gang,

also known as the Sugar House Gang, was a mob with predominantly Jewish members of bootleggers and hijackers in the 1920s, operating out of Detroit, Michigan, which was a major port for running alcohol products during Prohibition due to Detroit's convenient proximity to Canada, which did not participate in Prohibition.

Haager's picture

So thats why the EUR/USD is gone up in the first place.

defencev's picture

Your irony quite understandable. This website and its puppet-masters predicted collapse of Eurozone for several years now.

Moreover, it pretends to provide an information useful for investment purposes. Yet, ALL OF THEIR PREDICTIONS, proved to be wrong. Everybody with semblence of brains should ask a simple question. Are these people total idiots or just have a wrong ideological agenda. There is no silver bullet that would suddenly and instantaneously resolve the European crisis. But the step made by Draghi is a correct one. It should be understood in the context of fiscal union which is a goal and a process which will take a time to complete. People who follow this cite need to make a choice between their flawed ideology and a natural desire to have a decent return on their investments. Yesterday my portfolio jumped 2.5 percent and though I do not have Euro investments in it, I do have reasonable proxies like Swiss franc and Norwegian Crona denominated investments. It is time to wake up and smell the roses. Stubborn and stupid ideologues running these website will ruin your portfolio. Be warned.

Radical Marijuana's picture

Every extension of the global Ponzi pryamid scheme only postpones its final collapse to chaos. The problem is that your "portfolio" will become irrelevant when that system of global electronic fiat money fraud, backed by weapons of mass destruction, finally does collapse to chaos. It has gone from billions, to trillions, to quadrillions, and the ONLY way that it can continue is to keep doubling down.

I too hope that the established systems of runaway fraud keep going for as long as I am alive.  However, I no longer believe that, since they have to keep the global system contained, and enough people must be forced to agree to go along with the runaway frauds that control their lives, for the established system to survive indefinitely.

Sorry, but the "roses" are dying. The only "stubborn and stupid ideologues" are those who believe that the global pyramid scheme of electronic frauds, backed by atomic weapons, can be sustained indefinitely. Everyone, including me, more or less hopes the impossible exponential growth continues ... because when it finally fails to, then most of us will probably die miserable deaths. Therefore, for sure, enjoy your "portofolio" while you can. Enjoy participating inside of the established systems of frauds, backed by violence ... and go on laughing and dismissing those who believe that it is IMPOSSIBLE for exponential growth to continue forever, and when it finally stops, we will have already overshot way past what could have been sustainable, and therefore the collapse to chaos that happens then must wipe out most of the civilization that we now take for granted.

I WISH I could still believe what you believe!!!

Inthemix96's picture


I share your opinion.  But ask yourself this.  When did the PTB knock on your door, give you a call, ask your opinion on what they are going about around the world doing, in your and my name?  Who do these fuckers think they are?  Do they really think average blokes and girls like me and I would imagine you would quietly sit here and not give a damn what they are getting up to in our name?  The internet is a tool like no other, it allows simple folks like me to find out world events and correlate it into something I can understand.

I personally have had enough of this game, I know just through my job of hundreds of people who want off this ride.  They never asked us, they perpetrate violence and abuse of others daily against the wishes of the majority.  Mankind has sunk to levels I never thought a decent population would allow.  We should be fucking ashamed of what we allow in all of our names.

The time for talking, debating, and internet posting is gone.  It is time for good and decent people to stop this.  Who in fucking gods green earth wants to live after a nuclear war?  Do you?  I fucking don't, and I don't want my kids to either.  Collapse or not, mankind does not deserve to go out in a flash because the fucking powers that be decide it.  We fucking do, and we do not desrve being fried because the big man at the top says so.  It really is time to fight.

trebuchet's picture

This ZH piece is right up there in terms of analysis insight and foresight.

And BECAUSE of this website and people like it predicting collapse - (this site is taken FAR more seriously than many realise)  the powers that be AVOID collapse.  

Whats the difference between a Forecast and a Fortune tale?  




Radical Marijuana's picture

There is an Oedipus effect of interaction between the Forecasting and the Fortune Telling.

trebuchet's picture

My comment was in reply to defencev, my apologies if it seemed to be aimed at you

Poor Grogman's picture

I'm so impressed.

I think I will get some coins from different countries and put them on my desk in a tin.
That way whatever the market does I can truthfully claim to have good returns (denominated in other currencies).

With insight like that I too could aspire to become a hedge fund guru.

Inthemix96's picture


Unlike you my learned friend, I am not a trader, I am not a wall street boy, I have nothing at all to do with finance.  Zip, zero, nada.  I stumbled upon ZH a while ago, and along with some other blogs and various web sites, this average joe called inthemix96, has found out what ails mankind.  When I found out that my labour (and hard at that) was bought with money created from thin air, at first I thought, don't be so fucking stupid man, how can it be?

But, alas, I have found out how little the likes of people like you value real value.  I am afraid I am the bearer of bad news Defencev, you are going to pay friend.  You are going to pay a price that cannot be measured in wealth.  You, and all of your like mined jackals will pay a due.  You will pay in full, and you will pay with interest.  Humanity has no need for leeches of a mans labour.  You will learn this.  You will learn this wether you like it or not.  Enjoy the rest of your day, and digest these words.

Payback, will be a bitch

MiltonFriedmansNightmare's picture

So am I to believe that the Germans disapprove of Goldman owing Europe? Herecy I say, simply herecy, or is it terrorism?

One more question; when in the hell will the Spaniards and Italians wake up and grow a pair, tell Draghi (Goldman) to F-off, leave the Euro and print their own currencies?

Guess they aspire to be Greece.

kevinearick's picture

Soros,another initiating jackal caught behind the curve, playing heads i win, tails you lose, inside the prison of his own construction.

when the ss cars suddenly flee the palace...

noses's picture

Soros... A master thief among thieves.


Well... No fucks could be extracted from the ECB to be given for him.

bob_dabolina's picture

These fuckin' idiots are going to go back and forth like this forever.

eur/usd @ 1.28? Give me a fucking break.

Hulk's picture

Its not going to go on forever Bob, the Math couldn't be ignored forever.

The Math is now, finally, asserting itself...

Ancona's picture

Math cannot be ignored forever, but there are a hell of a lot of people who can be baffled with numbers for a very long time. Just look at how many people buy the BLS statistics.

sosoome's picture

forever=very long time

DosZap's picture

Drahuggi, was FOS  when he made the statement, saw this one coming 3000 miles away.

BACK to start.

amadeusb4's picture

I wonder how Hugh Hendry is making out. In 2011, he talked about the euro going to parity this year.


smiler03's picture

What if Germany exits the Euro?  Parity would look good.

"(as a reminder, nobody in Europe has actually implemented austerity)"

Tyler, try telling that to the Greeks. Suicide up. Homelessness Up. Charities feeding the poor. Pensioners taking 40% haircuts. If that ain't austerity, what is your definition?

Umh's picture

While I find many different retirement numbers mentioned. Both years of work (35,38) and age (58,61,63) requirements are mentioned. It is clear that the Greeks don't work as many years as the Germans who they are expecting to bail them out.

gggunchi's picture

It is true insanity.  When the BvFG grants the ESM its license this week you'll see it over 1.30 again . . . beautiful thing about that is you'll see that asscloen HvR get up say the problem is solved, just for a crap Spanish auction to send the thing crashing back down.  The people who made their money on this faux rally will make it back on the shorts.  


I personally htink this is Obama's effect, and he is doing his best to inflate the market.  Average voter in the US has no idea what the hell is going on in Europe . . . and I'm sure most of them have no idea there is a world outside their borders.  


I don't see it going above $1.31.  You are going to start to see negative rhetoric coming out of Franktfut to keep the EUR/USD down.  Last thing they want is some panicked sell off.  


Fuck this stupid Euro project.  

Racer's picture

The Central Bwanksters are like the boy who kept crying wolf when there was none and when there finally was no-one came to help because they no longer believed..

Tell a lie for too long and people give up listening

Too much jawboning and no action...

Vet4RonPaul's picture

First, Love ZH - thank-you for your honesty, expertise, courage and service to your fellow man.

Second, the Europeans are to be given great credit for their ability to postpone what should have been a complete implosion multiple times over the last 4 years.  They really are masters at getting blood from a rock.  And for the life of me I have no idea how the Euro/USD is now above 1.28.  I was betting it was going to near parity.  Finally, how is it that with silver skyrocketing, JPM is also going up?  If they have such a big short silver position, why isn't it translating to a falling stock price and losses?

bob_dabolina's picture

For all intents and purposes, JPM is the FED.

Vet4RonPaul's picture

oh shit!  some things i wish you hadn't told me bob