‘Capitalists’ Around the World Celebrate the Biggest Bailout in History! [UPDATED]

Stacy Summary:    I always love it how over the past two years, markets grow euphoric on any state intervention in the market.  Probably a good time to offload some euros in the next few days . . . (btw, if you have lots of euros, I would buy German assets for when the euro currency dissolves; you might want to be converted back into Deutsche mark rather than franc, drachma, peso or lira).


134 comments on “‘Capitalists’ Around the World Celebrate the Biggest Bailout in History! [UPDATED]
  1. ronron says:

    @Bonn. talking on the phone is not my speed. don’t send me no letters cause i can’t read. 🙂

  2. zaphodity says:

    LOL stock market dude in his floor space suit

  3. henk says:

    yeuh, gat you biljets starting with a X ( germany) and P ( holland) these currencies were connected before entering de euro.

    I wanted to have Norwegian krohne but now this currency is to high

  4. zaphodity says:

    After he dropped a SHITLOAD of acid !

  5. zaphodity says:

    A new financial landscape

  6. ronron says:

    @Zapo. 3 eyed toads or purple microdot?

  7. ronron says:

    the wolfpack printed this money. there is no defense.

  8. FiatMentalist says:


    What are you talking about? The Euro is another attempt at empire.


    U like empire? Empire U like? So were all WAGS now!!!

  9. Kay says:

    External bleeding at the central banks.
    public vomiting
    political diarrhea

    Looks like the financial Ebola of the big banks has struke again!

  10. frances snoot says:

    “The objective of this programme is to address the malfunctioning of securities markets and restore an appropriate monetary policy transmission mechanism. […]” (ECB volte-face on buying eurozone bonds)


    What’s being ignored (in the discussion on this thread) is the role of securities in market liquidity: particularly the role of the covered bond in the Greek repo market.

    The crisis was one of a systemic bank liquidity squeeze originating in Greece. If we wish to call debt ‘bad’ then we should be prepared for a total collapse of the international financial system as we know it.

    Here’s an excellent commentary:

    “I actually don’t think so. First of all, the interventions are described as—effectively—liquidity operations, to improve the functioning of monetary transmission. This is not a b.s. excuse for back-door debt monetization. Repo transactions using peripheral-economy debt as collateral have been increasingly dysfunctional, undermining the ability of some European financial institutions to fund themselves in private markets.”


    Trichet’s ‘volte-face’ concerning the Greek repo market malfunction (freeze) and

  11. ronron says:

    snoot snoot snoot. hey snoot.

  12. snoop diddy says:

    The European Crisis In Eight Simple Charts
    Submitted by Tyler Durden on 05/09/2010

    for something different -> The European beer and wine chart

  13. ronron says:

    the trillion has been dispersed. now what?

  14. Michael says:

    Fake money to solve real problems. That should work.

  15. stacyherbert says:

    @ronron – I’ll let Baby Face Nelson answer your question, http://bit.ly/b0jI1G

  16. Bonn says:

    ;;;;;->OFF TOPIC
    @ Snoot one more fer ya Leggit History Channel
    Ancient Aliens

  17. frances snoot says:

    Now we wait for the regulations to forward the European agenda and then they let all hell freeze over, ronron.

    heh, yourself

  18. stacyherbert says:

    @snoot – well in the first article linked to above you will note Credit Agricole analysts and UniCredit analysts LOVE the plan; these banks, of course, had massive exposure in the event of a Greek default; in the ‘volte face’ article you link to, Cantor Fitzgerald, a massive bond trader, are the losers . . . it would appear that Max’s assertion that Central Banks support the speculators in this global Savers Vs. Speculators war is correct

  19. marietta says:

    Here is a nice summary of what a coporatist/fascist’s wet dream for Europe would be. CEO of GE International:

  20. frances snoot says:

    I think Trichet was forced to buy those bonds by the threat of an imminent systemic freeze, Stacy. In which case, this is only blowing on the whirlygig by the central banks. The crux is not been seen to. It is being ignored in favor of a central control bias seen as the ‘answer’ to the ‘wolfpack’ through EU regulatory agency.

    But you know my perspective concerning the regulations coming out of Basel 3 concerning covered bonds. They cannot be incised from the argument concerning ‘we didn’t see it coming’. The Greek repo market was floundering for a good while before the freeze. What affect upon liquidity basel?

    That is a topic that should interest everyone coming out of this near miss.

  21. frances snoot says:

    Central banks support central bank liquidity: the ‘salvation’ of the security liquidity that has been provided was a bandage covering a system which is no longer supported by central bank agency.

    It is interesting that the author of that piece made the assertion that E (fiscal policy) cannot be separated from M (monetary policy) in the EMU. That is the crux now being pursued; the central banks don’t give a damn about market liquidity for private banks.

  22. frances snoot says:

    Basel is like throwing sand in the international financial system engines. Oil won’t do the trick of lubrication (as pursuant to central bank ‘rescues’). The entire system will collapse but liquidity will remain with the monetary authorities.

    There is a high degree of correlation between basel regs, the cmbs/covered bond regs/ and the frozen repo markets of both 2008 and 2010. We have two moribund systems now really.

    What happens when the engines really do seize up?

  23. frances snoot says:

    “When you try to have this confederation of states”…Nani Beccalli


  24. frances snoot says:

    “Although federalism was mentioned both in the drafts of the Maastricht treaty and the Treaty establishing a Constitution for Europe, it was never accepted by the representatives of the member countries. The strongest advocates of European federalism have been Germany, Italy, Belgium and Luxembourg while those historically most strongly opposed have been the United Kingdom and France; while other countries that have never campaigned specifically for a particular means of governance in Europe are considered as federalists.[citation needed] Some would consider this to be the case with states such as Spain, Portugal, Greece, and Hungary. It is also remarkable that in recent times the French government has become increasingly pro-European Union, while countries like Poland or the Czech Republic have taken on the roles of primary opponents to a stronger EU.[citation needed]
    “ Those uncomfortable using the “F” word in the EU context should feel free to refer to it as a quasi-federal or federal-like system. Nevertheless, for the purposes of the analysis here, the EU has the necessary attributes of a federal system. It is striking that while many scholars of the EU continue to resist analyzing it as a federation, most contemporary students of federalism view the EU as a federal system (See for instance, Bednar, Filippov et al., McKay, Kelemen, Defigueido and Weingast).(R. Daniel Kelemen) ”


  25. Kay says:

    This bailout isn’t really about Greece, it’s much bigger than that.

    They are bailing out the big banks which have a ton of dodgy debt in Eastern Europe.


  26. nama rama says:

    PIIGS in a blanket.

    oink oink…

  27. frances snoot says:

    “If there is one thing the Fed doesn’t like, it is systemic risk,” said Torsten Slok, an economist at Deutsche Bank AG in New York. “Early signs of systemic risk were brewing in the financial system last week, and if policy makers had not taken action this weekend, then this would also have been a threat to the U.S. financial system.”


  28. ronron says:

    ZH. people are paying a 31% premium for sprott gold. yum yum. { 🙂


  29. elsoto says:


    The Smoking Gun Document That Could Terminate George Papandreou’s Career

    Is that controlled demolition or what?

  30. Rah says:

    Euro still looking weak. Hopefully it returns to it’s death spiral soon.


  31. balois says:

    Please stop bashing France. Richard Perle is a resident, too…
    I ve lived & worked & paid taxes in the UK, US, France and a couple of other places. The UK was the drab starter, the US was the so-so ok main dish but France definitely was/is the desert. I still keep a place there, on rue de l Assomption, just off Av Mozart. Tell me anywhere on earth where you have 3 bakeries, 3 butchers, 1 fishmonger, 1 cheeseshop, 2 greengrocers, 2 Chocolatiers, 1 Huitrerie, 3 Sushi, 1 Greek foodie, 1 Thai, 1 Chinese, 5 bistros and plenty outdoor cafes on a tree lined street. And doctors, dentists, chemists, hair dressers, eyeglasses, men/women clothing stores, flower shops, a real shoemaker, furs, curtains, upholstery, sewing, supermarkets…and a funeral home, too, within a 10 minutes leisurely stroll – to all of them!
    And up the road is the Passy shopping street, the indoor market, appliances- and department stores, the restaurants around La Muette and down the road is Auteuil, the outdoor market, more restaurants and on it goes. There are few ugly buildings, beautiful Bauhaus examples, historic buildings galore and plenty of parks for jogging, tennis, pic-nic, boating, and hardly any A/C needed, nice people and friendly service.
    (And dont tell me there s the same on 78 and 2nd or 3rd Av or Soho or the Village or out in Greenwich or Muswell Hill, Notting etc etc – I ve counted and walked them all and lived there. It is not true. Beside the quality, choice and price – yep, prices, too – Paris beats all of them – by a long stretch, imho)
    So be nice to France and hope it stays like that.

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