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Today's Crunch Catalyst: Asian Banks Commence Cutting Credit Lines To French Banks, Sparking Self-Fulfilling Prophecies

Tyler Durden's picture





 

Remember how we joked (but were dead serious) that the IMF is now simply a figurehead organization, and the real global bailout cop is China? Well, that may not be the case for much long. Reuters has just broken news that at least one bank in Asia, and five other in process, has cut credit lines to major French lenders "as worries about the exposure of French banks to peripheral euro zone debt mounts, banking sources told Reuters on Thursday." Why is this worrying? Because as is by now well-known, the PBoC has been as aggressive a buyer in the primary market of European market as most European banks, which as is well-known immediately turn and pledge said debt as collateral to the ECB for 100 cents on the euro, and the fact that its proxies are now quietly withdrawing from the European market as lenders of last resort, is probably far worse news than a rumor that the S&P may cut France.

Reuters continues:

That sudden rise in risk perception, combined with sharp share price falls in French banks, prompted some banks in Asia to speed up reviews of counterparty risk and look at whether they should cut exposure to European lenders, sources at each of the six banks in Asia said. Contacted about the moves by the banks in Asia, a spokeswoman for top French lender BNP Paribas <BNPP.PA> in Paris said: "We never comment on market rumours."

 

Societe Generale <SOGN.PA> had no immediate comment to make while a spokeswoman for Credit Agricole <CAGR.PA>, which will publish its second-quarter earnings later in August, said the bank would not make any comment.

 

The banks in Asia and the sources -- a mix of risk officers, senior traders and loan bankers -- could not be identified because of the sensitive nature of the information.

 

The head of treasury risk management for Asia at one bank in Singapore said their credit lines to large French banks had been cut because of the perceived risks in lending to these counterparties.

 

"We've cut. The limits have been removed from the system. They have to seek approval on a case-by-case basis," the treasury risk official said. The bank official declined to name the French banks.

 

A senior credit trader in Singapore said that when a bank's shares fall that sharply their risk officer will automatically look at how much exposure they have to that lender.

And more:

Banks' heightened responses could exacerbate the market strains if they all acted simultaneously with portfolio-at-risk modelling, analysts said.

 

"The thing is if they all use it at the same time they will all sell at the same time when risk goes up, and that will drive prices down and it is like a snowball because then the prices go down and then your value-at-risk ratio will tell you 'oh, I must reduce my risk even more'," said Mark Matthews, head of research at Julius Baer.

 

Several of the traders and bankers in Asia said that while they had not cut all exposure to any particular institution, they were very cautious about taking on new trading positions with them.

 

A senior risk officer at a bank in Singapore said "obviously we are having a review", when asked if they were reassessing their positions with European counterparties.

 

Bankers and risk officers at the five institutions in Asia that were still dealing with French banks said that while short-term lending of up to 30 days was still taking place, they were conducting a thorough review of longer-term credit lines regardless of the type of transaction.

 

"It's all in relation to (our) take on a French bank's credit risk, regardless of whether it's a swap or interbank lending transaction," said a senior loan banker at a Japanese bank.

What happens next is well known to anyone who lived through the fall of 2008: credit lines withdrawn means investors dumping stock in droves, means depositors staging physical money runs, means more credit lines withdrawn, means immediate liquidity crunch, means rumors of insolvency, means self-fulfilling prophecy, means scramble to get funding first from ECB, then from Fed, but by then contagion has spread and the entire financial system is in danger of imploding, means several trillion in FX swap lines activated to prevent a run on the dollar, which also happens to be the funding currency, means another scramble to bail out capitalism.

Granted this is a downside case assessment.

 


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Thu, 08/11/2011 - 07:23 | Link to Comment achmachat
achmachat's picture

physical bank run?
Dude... People have become way too passive for that!

Thu, 08/11/2011 - 07:36 | Link to Comment RollOver
RollOver's picture

Now people do it over "Le Internet", probably not while watching soup de jour, but while reading ZeroHedge. Me guessing the latter folks are plenty buy now.

Thu, 08/11/2011 - 08:28 | Link to Comment falak pema
falak pema's picture

rollover : plenty sell now...so roll over and play it again Sam!

Thu, 08/11/2011 - 07:42 | Link to Comment unum mountaineer
unum mountaineer's picture

tell that to wamu

Thu, 08/11/2011 - 07:24 | Link to Comment Cojones
Cojones's picture

La merde a battu le ventilateur.

Thu, 08/11/2011 - 07:38 | Link to Comment breezer1
breezer1's picture

c'est diddely quack, quack diddely,'pooh'.

Thu, 08/11/2011 - 07:44 | Link to Comment Stumpy
Stumpy's picture

Not "battu". More "frappé" or "atteint".

Thu, 08/11/2011 - 08:43 | Link to Comment Sudden Debt
Sudden Debt's picture

Q. Why don't Master Card and Visa work well in France?

A. They do not know how to say "CHARGE!"

Q: Why did the French plant trees along the Champs Elysees?

A: So the Germans could march in the shade.

 

Q: What do you call a French man killed defending his country?
A: I don't know either, its never happened!

Q: What Does "Maginot Line" mean in French?
A: "Speed bump ahead" 

Q: Why do the French never perform “the wave” at a soccer game?
A: Because, that’s a gesture reserved for use only in time of war. 

Raise your right hand if you like the French ... raise both hands if you are French. 

"Do you know it only took Germany three days to conquer France in WWII? And that's because it was raining."

The French have only one actual fighting war hero, Joan of Arc, and they turned her over to the enemy!

Q: Why do people always talk about the 'foreign legion'?
A: They couldn't find any French to join! 

Q: Why did the French plant trees along the Champs Elysees?
A: So the Germans could march in the shade. 

 

Thu, 08/11/2011 - 07:26 | Link to Comment slaughterer
slaughterer's picture

"Granted this is a downside case assessment."

Any upside?

<total silence>

Guess not!

Thu, 08/11/2011 - 07:28 | Link to Comment slaughterer
slaughterer's picture

And with this news item, ES futures go RED.  This web site is dangerous.  

Thu, 08/11/2011 - 07:33 | Link to Comment wombats
wombats's picture

WOW!  Not RED, but it really did drop.  Just a coincidence I'm sure... <snarc>

Actually I'm sure the reall reason for any drop is probably global warmin.

 

Thu, 08/11/2011 - 07:54 | Link to Comment Stumpy
Stumpy's picture

Pretty much red now.

Thu, 08/11/2011 - 08:21 | Link to Comment Translational Lift
Translational Lift's picture

And....EU now considering a ban on short selling!!

Thu, 08/11/2011 - 07:30 | Link to Comment wombats
wombats's picture

Bullish for BofA?

Thu, 08/11/2011 - 07:32 | Link to Comment BeerGoggles
BeerGoggles's picture

Bloomberg were just saying yesterday how zerohedge caused many rumours. Guess ZH will be taken to court soon.

Thu, 08/11/2011 - 07:37 | Link to Comment wombats
wombats's picture

Probably just have their URL conficated by Big SIS first.

Thu, 08/11/2011 - 07:39 | Link to Comment Hedge Jobs
Hedge Jobs's picture

in the world of B'berg, CNN, CNBC, fox truth = rumours

Thu, 08/11/2011 - 07:41 | Link to Comment MsCreant
MsCreant's picture

No, called in front of congress to account for their traitorous actions.

Thu, 08/11/2011 - 07:47 | Link to Comment slaughterer
slaughterer's picture

I think the algos just scan the headlines of ZH at this point.  Tyler is the global MM.    

Thu, 08/11/2011 - 07:48 | Link to Comment Bob
Bob's picture

So at least it will be immediately forgotten. 

Thu, 08/11/2011 - 07:33 | Link to Comment slaughterer
slaughterer's picture

BOA = DOA (Already concluded last night here).  

Thu, 08/11/2011 - 07:34 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

I said a couple of weeks ago that France will be the first domino to fall. Looks like it's coming true. Lots of people thought Italy would be the 1st to fall. It's going to be France. Moody's and S&P already gave them the kiss of death whethere they realize it or not. 

Are your seat belts fastened? Got extra cash stashed? Stocked up on basic necessities?

Thu, 08/11/2011 - 07:36 | Link to Comment achmachat
achmachat's picture

Boxes of canned ravioli good until 2015.
Does this count as basic necessities?

Thu, 08/11/2011 - 07:41 | Link to Comment centerline
centerline's picture

Yup.  You can eat that.

Thu, 08/11/2011 - 07:52 | Link to Comment sabra1
sabra1's picture

damn!!! and i live in Quebec!!!!

Thu, 08/11/2011 - 07:56 | Link to Comment Stumpy
Stumpy's picture

So do I. And I'm evaluating scenarios where I'm better off to my homeland region, far away from big cities and where fishing, hunting and gathering are a way of life. Forget gold and silver there though, not sure if people had ever seen an ASE or a Maple.

Thu, 08/11/2011 - 08:39 | Link to Comment sushi
sushi's picture

Freeze Dried poutine.  Good for a decade.

Thu, 08/11/2011 - 07:34 | Link to Comment chinaguy
chinaguy's picture

Viva La Lehman!

Thu, 08/11/2011 - 08:27 | Link to Comment gwar5
gwar5's picture

I thought you were off to buy more farmland, CG -- I'm with you on there, but gonna sit tight on my PMs too. 

The wobbly banks/sovereigns leaves few other options. Rolling economic blackouts appear to be in our future.

Thu, 08/11/2011 - 07:36 | Link to Comment Paralympic Equity
Thu, 08/11/2011 - 07:36 | Link to Comment TaxSlave
TaxSlave's picture

It's not bailing out capitalism.  It's killing capitalism.

What if the sheeple decide not to be enslaved by these debt-bonds?

That's right.  REPUDIATE!

This is the culmination of a century's worth of effort to make every citizen of the world beholden to the central banks through money-printing.  The only monkey wrench in the works is the internet.  People are waking up to the fact that they are being impoverished by money-printers, and waking up to the fact that the plan is to make them slave away forever to pay off paper-money debt with real goods.  A burden that can never be paid off.

It WILL NEVER be paid off.  The only question is, will you consent to be enslaved by them for it?

I say, it's not my debt, and I'm not paying it.  Let the damned banks fail.

Thu, 08/11/2011 - 09:56 | Link to Comment Commander Cody
Commander Cody's picture

Capitalism?  I think we're bailing out fascists.

Thu, 08/11/2011 - 07:37 | Link to Comment chump666
chump666's picture

the chinese are terrible investors, good savers, just have no idea how to invest in modern markets.

ez indexes are going red again.  

Thu, 08/11/2011 - 07:37 | Link to Comment Re-Discovery
Re-Discovery's picture

... and it means the Fed will be extending $1 trillion in bailout funds to Eurozone as worthless fiat goes global.

Thu, 08/11/2011 - 07:38 | Link to Comment twinshot
twinshot's picture

"a battu" ? "frappe" je pense mais pas battu, non?

Thu, 08/11/2011 - 07:46 | Link to Comment Stumpy
Stumpy's picture

In Quebec, we would have said: "la marde" and not "la merde".

Thu, 08/11/2011 - 07:41 | Link to Comment vast-dom
vast-dom's picture

So how is France not BBB+? What exactly is their true GDP? What exactly do they export? What do they exactly produce?

 

And then apply very same questions to the good ol' US of A.......

Thu, 08/11/2011 - 08:21 | Link to Comment Sudden Debt
Sudden Debt's picture

What exactly do they export?

DUDE!!! THEY HAVE THE BIGGEST CHEESE FACTORIES IN THE WORLD IN FRANCE!!

HAVEN'T YOU EVER HEARD OF THEIR NATIONAL CREDE?! : DU PAIN, DU VIN ET DU BOURSIN!

 

http://3.bp.blogspot.com/_tBrl9vshZ7Y/TMFZdFNJ4zI/AAAAAAAAABY/RhCov9_yPF8/s1600/Frenchman.gif

Thu, 08/11/2011 - 08:33 | Link to Comment Helmholtz Watson
Helmholtz Watson's picture

What exactly do they export?

 

Wine, stinky cheese and an exceptionally undeserved level of arrogance

Thu, 08/11/2011 - 07:40 | Link to Comment mfoste1
mfoste1's picture

EZ bank collapse, but US taxpayers will probably bail them out again, even though its obvious it doesnt work anymore

Thu, 08/11/2011 - 07:43 | Link to Comment Bob
Bob's picture

More money always works . . . for banksters.

Thu, 08/11/2011 - 08:05 | Link to Comment youngman
youngman's picture

About a month ago the Fed reopened up the cash window for Foreign banks....seems to me they knew what was going to happen....don´t worry the USA WILL be bailing out Europe......Secretly of course...at least for two years...Banks always win

Tyler you need a checklist on your predictions.....I think we will hit one every week...

Thu, 08/11/2011 - 07:49 | Link to Comment Peter K
Peter K's picture

And to think that the "silver bullet" to the present situation is for the Germans to pull out of the Euro. But that would bring to an end the 4th Reich (and the lastest socialist experiment)prematurely. But we can't let that happen, now can we?

Thu, 08/11/2011 - 07:59 | Link to Comment vast-dom
vast-dom's picture

No not quite: 4th Reich REGROUPS and functions not as "partner" but as discount PURCHASER of Euro BARGAINS! And the war is won, sort of.....

Thu, 08/11/2011 - 07:42 | Link to Comment Yen Cross
Yen Cross's picture

  And scumbag European Bankers buying dollars, to hide in Bernankes ass cheeks!  I'm livid!

Thu, 08/11/2011 - 07:42 | Link to Comment Peter K
Peter K's picture

Socialism in its death throes.  And I still think that the one with the least socialized government will be the one that will survive the best. I'm putting my money on post Soviet Europe and the US.

 

Thu, 08/11/2011 - 07:43 | Link to Comment Bazooka
Bazooka's picture

I have not posted for quite a while but have been enjoying my HUGE profits in VXX, FAZ.

(Those who followed my earlier posts weeks ago and profited too, cheers!)

It's All the Same Market (R. Prechter). I believe the current massive divergence you're seeing in Gold and Silver means Gold will fall like Icharus with melting wings. The fall will be more swift than its rise from $900 has been. Many tears will be shed...except from those who hold cash and shorts.

Mighty profits await us!

Thu, 08/11/2011 - 08:14 | Link to Comment WonderDawg
WonderDawg's picture

I'm pretty much right there with you. I've been anticipating this for about a year. It's been a painful year, but it took less than 3 weeks to erase the gains the market has made in the last 12 months, so it appears those of us who didn't lose faith in Prechter after his numerous failed attempts to call a top are positioned favorably for this scenario.

Thu, 08/11/2011 - 08:57 | Link to Comment taraxias
taraxias's picture

You mean there's someone out there who actually listened to Prechter and is still solvent?!!!!!

I'm never ceased to be amazed on here :)

Thu, 08/11/2011 - 07:44 | Link to Comment williambanzai7
williambanzai7's picture

Thankfully, as Tim GEITHNER points out so astutely, Frankendodd has made the world as safer place.

Thu, 08/11/2011 - 07:46 | Link to Comment Bazooka
Bazooka's picture

While our glorious president goes on vacation, his audacious mendacities on false hope and change has a stench that will always follow wherever he goes. Vacationing while 14 million are out of work! Vacationing while the nation is about to collapse into financial ruins! Vacationing while he has made zero change to the positive.....shame on you!

Thu, 08/11/2011 - 07:49 | Link to Comment slaughterer
slaughterer's picture

At least Sarko zippered his pants back on and returned to Paris from his vacation on the beach when the SHTF.

Thu, 08/11/2011 - 07:52 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Carla Bruni is just a beard.

Thu, 08/11/2011 - 09:08 | Link to Comment falak pema
falak pema's picture

blue beard's favorite poupée not his toupée!

Thu, 08/11/2011 - 07:52 | Link to Comment Stumpy
Stumpy's picture

And our fine canadian prime minister, M. Harper, is licking butts in South America. He won't comment the US situation. Looks like he's trying to find new friends if/when US are not our best friend forever anymore.

Thu, 08/11/2011 - 08:28 | Link to Comment darkpool2
darkpool2's picture

I have been thinking for a while now that as part of the " great reset" that we , as in Canada, stop looking south, but instead look across the Arctic ice/ waters and start teaming up with Russia---- kind of northern commodities zone. New reserve currency anyone? Commodities backed. Our biggest problem might be that we cannot build a 4000 mile fence quickly enough......but hey, Russian nukes!!!!!! Hmmmmmm.
( only PARTLY toungue in cheek----- dont want anyone choking on thier cornflakes)

Thu, 08/11/2011 - 13:46 | Link to Comment Stumpy
Stumpy's picture

Economically, an interesting idea. A backstab to the US though. No coming back from this one.

But culturally, how do you bond with the Russian? With a lot booze?

Thu, 08/11/2011 - 07:57 | Link to Comment MsCreant
MsCreant's picture

Nah, let him go, at least he won't do anything dumb or make dumb speeches (though he does tank markets nicely, he has that kind of power).

Thu, 08/11/2011 - 07:57 | Link to Comment Dr. Engali
Dr. Engali's picture

Personaly I'm glad he went on vacation. It gets him off the damn TV.

Thu, 08/11/2011 - 08:10 | Link to Comment WonderDawg
WonderDawg's picture

Stand down, fellows, he doesn't go on vacation til the end of the month. Of course, by then the markets will be in ruin, but it won't affect his tee time.

Thu, 08/11/2011 - 08:04 | Link to Comment slackrabbit
slackrabbit's picture

You mean he's not there to screw anything up, nor sell us all out?

Finally, change I can believe in.

Thu, 08/11/2011 - 07:46 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Je ne sais quoi, bitchez

Thu, 08/11/2011 - 07:50 | Link to Comment Sudden Debt
Sudden Debt's picture

I'VE SEEN IT HAPPEN!!

There was this Asian guy last weekend with a knife pointing to a drunk Frenchman who couldn't keep his hands from that Asian guy's girl and that Asian guy was constantly yelling:

"I'M GOING TO CUT YOU, YOU BASTALD! I'M GOING TO CUT YOU!"

He didn't really look like a banker.... but is was weekend... can't expect them to wear a ty and a suit in the weekends right?

 

Thu, 08/11/2011 - 07:54 | Link to Comment gratefultraveller
gratefultraveller's picture

OT Facebook starting to censor clips of people speaking up about the riots in London? Tried to post this link

http://www.youtube.com/watch?v=78fDirs4TlE&sns=fb

and got the message: "sorry, facebook unable to update your status at this time"...

Thu, 08/11/2011 - 08:09 | Link to Comment TaxSlave
TaxSlave's picture

Link worked for me.

Thu, 08/11/2011 - 07:55 | Link to Comment Dr. Engali
Dr. Engali's picture

When do they start cutting lines to BAC?

Thu, 08/11/2011 - 07:59 | Link to Comment MsCreant
MsCreant's picture

After what happened with Citi and the Arab who tried to bail them out, I bet that is a done deal already.

Thu, 08/11/2011 - 08:06 | Link to Comment Yen Cross
Yen Cross's picture

Excellent comment!  I guess that Crude surplus "AKA" slush fund dried up?

Thu, 08/11/2011 - 07:58 | Link to Comment rsnoble
rsnoble's picture

'Get money from the ECB first and then the FED'??? Uh---aren't we in enough mess here?  Trillions on wars, trillions to foreign coutries, trillions to banksters and now it's time to drop the hammer on grandma, the disabled and unemployed.  Shameful!!

This whole situation reminds me of my dad and my brother who is a drug addict.  Brothers been milking dad for 20 years now.  Finally dad has nothing left to give him.  Brothers house that he paid off is now foreclosed on, all the cars are gone, brothers living in a shelter and still doing drugs every chance he gets.  Are our leaders drug addicts??  One look at Geitner would certainly confirm that.

Thu, 08/11/2011 - 08:02 | Link to Comment Irish66
Irish66's picture

Unemployment lawyer says "companies fighting against workers, to get unemployment"

Thu, 08/11/2011 - 08:04 | Link to Comment rsnoble
rsnoble's picture

They've always done that.  But it's worse now.  That's ok because in the end they'll get theres: less money to spend, less jobs, less profit.  We're all going down in flames just some sooner than others.

Thu, 08/11/2011 - 08:10 | Link to Comment youngman
youngman's picture

I was amazed to hear that teachers file for unemployment for their summer break...what a crock...and Michigan cut off 30,000 students off of food stamps.....food stamps in college...come on....we are doomed I say..doomed...and this is just the tip of the iceberg..

Thu, 08/11/2011 - 08:02 | Link to Comment rsnoble
rsnoble's picture

I mean really......look at the results.  Elect a coke snorting cowboy and a sociopath oil tycoon and look what happend.  The stupidity of people is just amazing, I live in a rural area with all farmers and according to them 100% of the problem is obama.  And no, im not a dem I just call it like I see it.  For instance.......let's not forget who started nafta and who signed it in.  Something is seriously wrong around here.

Thu, 08/11/2011 - 08:04 | Link to Comment Yen Cross
Yen Cross's picture

  just wait until the " Nuclear Blimp" Explodes in the U.S.  People are Fed ( LITERALLY) up!   London will look like " Wood Stock"!

Thu, 08/11/2011 - 08:08 | Link to Comment Captain Benny
Captain Benny's picture

Not to encourage a bank run or anything, but now is the time that people should really be withdrawing cash from their bank accounts and stashing it safely.  When BAC fails, the bank run in America will force a bank holiday and we know from history where that leads us.

Thu, 08/11/2011 - 08:13 | Link to Comment TaxSlave
TaxSlave's picture

Not to worry.  They'll be paid off with wheelbarrows of one-ply eventually.  Anyone who has that much in there now has got a serious case of Faith.  Which will soon be rewarded.

Anyone just now waking up would be well advised to take the Captain's advice and turn a major fraction of that one-ply into something useful.

Thu, 08/11/2011 - 08:18 | Link to Comment falak pema
falak pema's picture

mad dogs and english rags under the mid-day sun...headless chickens running over the edge.

Thu, 08/11/2011 - 08:21 | Link to Comment johnnymustardseed
johnnymustardseed's picture

Les Misérables USA Tour Stops

Bank of America - October 2011

Citi Bank  -September 2011

Wells Fargo - January 2012

JP Morgan  - May 2012

Morgan Stanley  June 2012

Ticket are at will call, standing room only

 

Thu, 08/11/2011 - 08:21 | Link to Comment youngman
youngman's picture

Now there is talk of banning short selling in Europe.....on either banks or the whole market

Thu, 08/11/2011 - 08:23 | Link to Comment High Plains Drifter
High Plains Drifter's picture

does mr grant, know that the rothschild cartel owns most of the world gold , and its means of supply, as well as all of the world central banks? i am sure he does but since he is a lonely wasp, in new york , conversations about real truths, cannot be uttered especially by some goy slave.....  such discussion on CNBC are interestingly different for a change but in reality, unrealistic and devoid of any comon sense and anti american. the gold standard is a false promise based upon lies......it is a controlled option that should not be considered whatsoever.

Thu, 08/11/2011 - 08:24 | Link to Comment EvlTheCat
EvlTheCat's picture

Anyone else catch the Purdential add on the left hand side?

Love their new slogan:

"Making sure people don't outlive their money!"

Thu, 08/11/2011 - 08:49 | Link to Comment hardcleareye
hardcleareye's picture

I thought that was the Feds slogan...  it's hard not to dip into you captial if you can't live off your interest.

Thu, 08/11/2011 - 08:25 | Link to Comment falak pema
falak pema's picture

The french have declared they will sell no champagne to China, until this mess blows over.

Thu, 08/11/2011 - 08:31 | Link to Comment gwar5
gwar5's picture

Peak banks, bitchez.

Rolling economic blackouts ahead?

Thu, 08/11/2011 - 08:32 | Link to Comment windcatcher
windcatcher's picture

TD said, last paragraph: “means another scramble to bail out capitalism”.

Capitalism? That should be plural and not singular. There are two kinds of Capitalism:

Main Street American Capitalism which employees 70% of Americans and Multinational Corporate Centralized Bankster Capitalism.

You know, like the great fascist Benito Mussolini once stated. “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”

Funny, Chinese Communism is also that ideal structure, the perfect centralized fascist tool. That is a marriage made in hell and the death of American Main Street Capitalism.

Tell me where would America be if the trillions of dollars of taxpayer money/debt would have been spent “stimulating” Main Street Capitalism?

Thu, 08/11/2011 - 08:54 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

well, i like the part about the "snowball effect" ccaused by:  "Banks' heightened responses (which) could exacerbate the market strains if they all acted simultaneously with portfolio-at-risk modelling, analysts said.

in slewienomics, we call this The Ponzi Collapse!

of course, this is tyler's "downside" risk assessment.  and, speaking of black helicopterZ, i was wonder what the paper losser were on the equities, and i found the answer right here on zH this morning:  $8 Tril (in todays dollars, we must assume).

Thu, 08/11/2011 - 09:17 | Link to Comment Itsalie
Itsalie's picture

Reuters made it clear it's a Singapore-based bank, that's not chinese. I bet my last sous the Chinese PBoC proxies (aka CIC and SAFE and yes you smart people in the City) are all busily snapping up all the high-yielding PIIGUS papers. And correction, the chinese are not terrible investors, its the CCP that is doing all the heroic stuff like buying US toilet papers and PIIGUS sanitation napkins.

Wed, 09/14/2011 - 05:47 | Link to Comment chinawholesaler
chinawholesaler's picture

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