Tranched EFSF - Or TARP Lite

Tyler Durden's picture

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HelluvaEngineer's picture

Either way, I'm sure it's incredibly Bullish.

lizzy36's picture

So they rebranded the EFSF from a SIV to a CIF/PPC. 

Still can't raise the money can they?

Good luck with that.

HelluvaEngineer's picture

It's not about raising money.  It's about delaying the inevitable a few more days/weeks until the looting is complete.

hedgeless_horseman's picture






No matter the acronym, the meaning is debt slavery.

"I will never live for the sake of my parent's debts, nor ask my children to live for mine."

Who of us can truthfully say this? 

Who will dare to break this heritage of debt slavery?

Who is waiting for the master to set you and your children free, eventhough he has invested so much in your service?

Who is hoping for some crumbs from the master's table?

Who is fighting?

Who is alive and who is already dead?

GMadScientist's picture

More like an STD, specifically Syph.

Symptoms of neurosyphilis include:

  • Blindness
  • Confusion
  • Dementia
  • Depression
  • Headache
  • Irritability
  • Numbness in the extremities (Greece?)
  • Poor concentration
  • Retardation
semperfi's picture

What part of "You can't solve a debt problem with more debt" don't they get?  When was the last time anyone put out a house fire with a flamethrower?

Dapper Dan's picture

You forgot about the insurance on the house, problem solved.

Hint:  credit default swap

topcallingtroll's picture


The value of the cds goes to zero as the original debt is extinguished.

Watch cds pricing. It will tell us if or when the plan is credible.

mess nonster's picture

God, please deliver us from the curse of the acronyms! Or, should I say, GPDUFTCOTA!!!!!!!!!!

oogs66's picture

the french and germans love their acronyms...and more and more the whole world is run by kids will grow up hating 3 letter acronyms....let them swear, no one ever went broke from saying fuck!  but letting IMF, ECB, IIF, SIV, CIF, PPC, PPT, FED, rule the world will

topcallingtroll's picture

They are having to use three letter words cuz all the good four letter words are taken.

Mercury's picture

So let me get this straight -  by putting a bunch of subprime but geographically diversified sovereign loans (which historically have a very low default rate) together into a pool and then dividing that pool into senior and subordinate tranches....shine can in effect be created from shit.

Why does this sound familiar?

LawsofPhysics's picture

Apparently inflation is not the only thing America is good at exporting.

Killer the Buzzard's picture

This whole scheme sounds like a single-property CMBS, but instead of, say, securitizing Rockefeller Center, it is some ghetto tenement in Jersey City.

LawsofPhysics's picture

Equities rallying hard, but without gold.  This is a change, but how to interpret it.

Captain Benny's picture

CIFs sound like the equivelent of lubricant that you'd want to rub on your wanker prior to screwing a dry granny vagine.  No matter how much lube you put on, the sandpaper is still going to rub you raw and you'll still be the one getting monetarily f'cked.

Josh Randall's picture

I've lost track of all of this - I will need the cartoon Bears to explain it to me

topcallingtroll's picture

They could do it.

You could follow a moneybag from the taxpayers as it exchanges hands several times and then ends up in the hands of the big bindholders, banks and pensions.

Hilarity ensues as they try to confuse the first guy handing over the money bag as to where it ultimately goes.

slaughterer's picture

The strategies being used to rescue the ESFS are a reduplication, on the level of government debt, of the pre-2008 MBS structured finance revolution that led to the finance crisis in the first place.   Then it was "slice and dice" mortgages, now it is "slice and dice" government debt.   I would say the CIF will take 2-3 years to blow up, and blow up it will, taking all the mezz dumb money with it, and perhaps some of the senior. 

oogs66's picture

yes, if they manage to avert problems now, the problems will be bigger and even more convoluted and dangerous next time around...though i think 6 mths to a year is the right timeframe

Mercury's picture

A couple of months ago, I would have doubted that the leaders of these countries would purposely saddle their pension plans with bad investments. That they wouldn’t risk more of their citizens future on a plan to keep together a debt riddled zone of countries that is getting worse rather than better. 

Of course they will because when the S inevitably HTF the appeal to taxpayers/private wealth  becomes save the pensioners not save the wasteful and bloated government.

I am a Man I am Forty's picture

they are trying so hard to figure out a way to fuck investors over, who in their right mind would buy a lower tranche on the CDO, "hey here's some extra yield for ya for taking on that extra risk..." POOF, investment gone to zero prior to them making a single payment

lapedochild's picture

Remind me again... why do countries not just pony up more actual money?

They could issue a special tax on their citizens. They will gladly pay because noone wants to see the EZ tear appart and northern countries are more than happy to pay for southern countries, right?

No? There's your answer to the long term succes of this integration

topcallingtroll's picture


That is why they must hide the subsidy in financial gimmickry.

It would be far more efficient just to auction off the bonds and send the efsf money directly to sellers up to a specified limit to make up the losses.

But everyone could understand that.

chubbar's picture

It's just one big money shuffle in an attempt to dupe the population into thinking this problem of too much debt is solved.

I don't know two people who understand what is happening and the consequences the world faces when this debt scheme collapses. Everyone knows something isn't quite right but has no idea other than it is a recession, or possible recession depending on the channel they get their news from.

I'm sure they'll be convinced that it is the next false flag that is the culprit. Im seeing the same war drums beating for a war against Iran as I did for the first gulf war. Perhaps that is the plan for the next "big diversion"? I guess we will all see shortly.

semperfi's picture


topcallingtroll's picture

Hmmm.... so complicated financial engineering is bad....unless governments do it then it is good.

Monedas's picture

Reminds me of a 1930 B&W "B" movie where the bad guys are squabbling over dividing up the loot from a bank heist ! Monedas 2011 Comedy Jihad put a TARP over it !

Bansters-in-my- feces's picture

Long story made short.they need a SuperPonzi.

These regular old Ponzi's are not working so well.

spanish inquisition's picture

I think I get it.. Its like factory second condom insurance, it is cheap, instills confidence to have more "protected" sex and you can get your money back you spent on the condom. Sounds safe to me, am I missing anything?

topcallingtroll's picture


Now we know who the second loss bagholder in a CIF structure would be, the ECB.

Will the Germans somehow find that more palatable than the ECB monetizing individual country bonds? Only if they are dimwitted and suffer from mental accounting.

LongSoupLine's picture

Call it what you want, name it something else daily, ramp it with shadow banking fiat, back it all up with rumors, mis- and dis-information and you get what we have yet again this morning...a huge pile of growing shit and surging futures.

f16hoser's picture

A "Turd" by any other name is still a "Turd!"


Yancey Ward's picture

Well, there is lots and lots of dumb money in pension plans.  Hell, the governments could even require it be invested in the CIF.

taraxias's picture

Who said you can't turn shit into gold ?!

Dorky's picture

This PPC/CIF plan looks so much like "how to manage default" than "how to manage recovery".

Well, I guess this plan is good enough to buy some more time.

Buy some more time for what?

Buy some more time for the TBTF bank to completely liquidate their positions in the EU before letting everything collapse.

The market is not driven by economic fundamentals.

Rather it is driven by politics, corruption and manipulation.

slewie the pi-rat's picture

  <=== yes

  <=== no

Q:  want the planet earth to function properly?

liquidate the bad debt and maybe all debt, and give peace a chance, BiCheZ!