Mish's Global Economic Trend Analysis |
- IMF Needs Funding; My Dear Darling
- Desperate Times Lead to Desperate Lies; Europe Weighs the Weightless; Even Citigroup Sees the Lies
- In Galling, Pathetic Whine, Deutsche Bank CEO Warns Against Opening "Pandora's Box"
- German Banking Group Warns of Contagion, Requests Taxpayers to Take Hit for Stupid Loans Made by Stupid Banks
IMF Needs Funding; My Dear Darling Posted: 25 Sep 2011 08:47 PM PDT Things are so dire the IMF is out of cash. Don't take that from me, take it from Christine Lagarde, head of the IMF. The Telegraph reports IMF may need billions in extra funding, says Lagarde Christine Lagarde said the money available to the organisation "pales in comparison to the potential financing needs of vulnerable countries".My Dear Darling My dear Darling, you are a complete fool (but no, I don't love you anyway). Here are the "Lessons of Lehman" Lessons of Lehman
Darling continues .... "The problem with the Greek crisis is that it has been allowed to run on and on and on."I happen to agree with that Darling sentence, unfortunately I completely disagree with the context. The smart thing to do would have been to let Greece default. It is now clear Greece is going to default anyway. History will show the world will not end. It will also show that bailouts to date have done nothing but harm. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Desperate Times Lead to Desperate Lies; Europe Weighs the Weightless; Even Citigroup Sees the Lies Posted: 25 Sep 2011 05:35 PM PDT Are central bankers and politicians really as stupid as they sound or are they pathological liars who simply cannot help it? Check out these preposterous lies by Bank of France Governor Christian Noyer as quoted by Bloomberg in Noyer Sees 'Absolutely No Reason' to Use Bank Backstop Noyer Lies
All of those are blatantly preposterous. However, lie number 1 has to be one of the top lies of the year. "French banks have no toxic assets"?! For starters, what about Greek bonds about to take a 50% haircut or more in default? That lie is so ridiculous no one on the planet can possibly believe it. Greece vows to stay in the euro, never go bankrupt In case you need more laughs this Sunday, please consider Greece vows to stay in the euro, never go bankrupt Greek Finance Minister Evangelos Venizelos sought to reassure nervous markets and EU partners on Saturday by pledging his debt-ridden country would do whatever it takes to avoid default and stay in the euro zone.No Greek Paper Will Go Uncovered!? Excuse me for pointing out two simple facts.
Europe Weighs the Weightless, Comes Up with Wrong Answer Bear in mind the German supreme court has ruled out permanent bailout mechanisms. Moreover, the odds that Finland, Austria, Slovakia and the Netherlands would approve them is close to zero. Nonetheless, Europe Weighs Speedier Enactment of Permanent Rescue Fund to Stem Crisis European governments are exploring speeding the start of a permanent rescue fund for their cash- strapped economies amid fresh signs they may bolster efforts to halt the worsening sovereign debt crisis.Citigroup and JP Morgan Dismiss the Lies Lies from Europe are now so preposterous that even Citigroup can spot them. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
In Galling, Pathetic Whine, Deutsche Bank CEO Warns Against Opening "Pandora's Box" Posted: 25 Sep 2011 10:33 AM PDT In a galling, pathetic whine, Josef Ackermann, CEO Deutsche Bank warns of "Opening Pandora's Box" if banks have to take responsibility for their poor decisions. Yahoo! Finance reports Bank lobby rejects reopening of Greek rescue deal The international bank lobbying group that has been taking a leading role in negotiations on giving debt-ridden Greece easier terms for its bonds on Sunday rejected calls to impose larger losses on private investors.As noted moments ago in German Banking Group Warns of Contagion, Requests Taxpayers to Take Hit for Stupid Loans Made by Stupid Banks admission that losses on Greek loans will be far greater than 21% is starting to spread. Ackermann is a Liar There is no polite way to say it so I may as well be blunt: Josef Ackermann is a liar. Banks agreed to the 21% haircut in July for one reason and one reason only: It was nowhere near "fair" and banks knew they got off easy. The only "fair" proposal is for those who make stupid decisions to pay full price for those decisions. Ackermann wants taxpayer to bail him out. Screw Ackermann. And if Deutche Bank goes under as a result, Ackerman and the entire board should be fired. Indeed the entire banking system would be better off if failed bank executives get shown the door and their pensions set to zero when banks fail. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Posted: 25 Sep 2011 10:14 AM PDT Slowly but surely (except from France), bankers are willing to admit things are more screwed up than they previously stated. For example, please consider German Banking Group Warns of further Greek Charges. Germany's private banks need to prepare for further fallout from the euro zone's sovereign debt crisis, the head of Germany's BdB banking association said on Sunday.Did you catch that? Schmitz is pleading for passage of the EFSF to dump losses made by stupid risk-seeking banks on the backs of overburdened taxpayers. The "private investors" he wants to bail out are the banks and the bondholders. Recovery will be delayed and moral-hazard policies rewarded once again unless banks and bondholders pay for the stupid risks they took. As I have noted before, banks are not lending anyway, so there is no risk of having responsible parties take responsibility for their actions. Indeed, the way to increase lending is to require bondholders (not taxpayers) to bring banks up to required capital levels. Thus, private investors should pay 100% of the price for their poor decisions. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
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