Bailout

The No.1 Trend Forecaster Gerald Celente: The Second American Revolution STARTS NOW! – Syria – Europe – Gold – WW III (Video)

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“The Entire Global Economic System Is In Collapse.”


YouTube Added: 27.06.2012

If Nostradamus were alive today, he’d have a hard time keeping up with Gerald Celente.
– New York Post

When CNN wants to know about the Top Trends, we ask Gerald Celente.
– CNN Headline News

There’s not a better trend forecaster than Gerald Celente. The man knows what he’s talking about.
– CNBC

Those who take their predictions seriously … consider the Trends Research Institute.
– The Wall Street Journal

A network of 25 experts whose range of specialties would rival many university faculties.
– The Economist

Europe ‘Welcomes’ The Spanish Bailout

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– Europe “Welcomes” The Spanish Bailout (ZeroHedge, June 27, 2012):

One just can’t come up with better wording if one tried. From Bloomberg:

  • EUROGROUP WELCOMES SPANISH REQUEST FOR FINANCIAL ASSISTANCE
  • EUROGROUP SAYS CYPRIOT RESCUE IS `WARRANTED AT THIS STAGE’
  • EUROGROUP SAYS SPAIN BANK NEEDS ESTIMATE AT EU51B TO EU62B
  • EUROGROUP SEEKS `AMBITIOUS MEASURES’ FROM CYPRUS ON BANKS

And a little change in the original plans:

  • EUROGROUP SAYS SPAIN TO REQUEST TECHNICAL ASSISTANCE FROM IMF

Now Europe is looking to welcome other broke countries for which Germany will pay.

Iceland Indicted Former PM Geir Haarde, Arrested The Banksters, Left The Recession, The Economy Is Growing And Is Beating The Rest Of The World (The Young Turks Video)

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Must-see!


YouTube Added: 20.06.2012

… and here is the result (Turns out the sky wasn’t falling in Iceland!):

– Two Thirds Of Icelanders Oppose EU Membership

– Icelandic Anger Bringing Record Debt Relief in Best Crisis Recovery Story

– Iceland Once Again Tells IMF, UK, Netherlands To ‘Go to Hell’; ‘Ice Torture’ Repayment Scheme Collapses

– Iceland: Economy Exits Recession

Even better:

– Why is Greenland so rich these days? It said goodbye to the EU!

Germany’s Constitutional Court May Delay Bailout Fund Ratification

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The ESM is totally unconstitutional, but who cares?

– German court may delay bailout fund ratification (Reuters, June 21, 2012):

Germany’s constitutional court said on Thursday it will need time to study the euro zone’s permanent bailout mechanism after its expected approval in the German parliament next Friday, which could delay its scheduled start date on July 1.

Angela Merkel’s government and the centre-left opposition reached a deal on economic growth measures on Thursday which should enable parliament to ratify Merkel’s fiscal pact and the European Stability Mechanism (ESM) on June 29.

The ESM cannot come into effect without ratification by Germany, the biggest economy in the euro zone. But a spokeswoman for the top court said the ESM is so complex it expects head of state Joachim Gauck to delay his signature of the text approved by parliament until the court has had time to study it.

Spain And Italy To Be Bailed Out In £600 BILLION Deal

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Not Spain and Italy will be bailed out, but the banksters (AGAIN):

– Nigel Farage On FOX News: ‘Barroso Is A Deluded Communist Idiot’ – ‘The Whole Thing Is A GIANT PONZI SCHEME’ – ‘And At The End Of The Day This Whole Thing Is Going Bust’ (Video):

European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.


Speaking before the meeting, François Hollande, the French president, said: ‘It’s not on growth. It will be more on mechanisms that allow us to fight speculation.’ Photo: A

– Debt crisis: Spain and Italy to be bailed out in £600bn deal (Telegraph, June 19, 2012):

Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.

It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.

Mrs Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels.

Read moreSpain And Italy To Be Bailed Out In £600 BILLION Deal

Nigel Farage On FOX News: ‘Barroso Is A Deluded Communist Idiot’ – ‘The Whole Thing Is A GIANT PONZI SCHEME’ – ‘And At The End Of The Day This Whole Thing Is Going Bust’ (Video)

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YouTube Added. 19.06.2012

– Farage On Barroso: “He’s A Deluded Communist Idiot” (ZeroHedge, June 20, 2012):

Commenting on the incredible circle-jerk that Europe (sovereign-to-banking-system) has become, the outspoken UKIP MEP Nigel Farage exclaimed to FOX Business in this best-ever-rant clip that “The whole thing is a giant Ponzi scheme, isn’t it?” Goaded somewhat by the interviewer’s questions citing Barroso’s intimation that the US is to blame for Europe’s problems, Farage opines that “Barroso is a deluded idiot” and a communist who supported Chairman Mao. The contagion effect from the US financial crisis did have impacts on Europe, there is no doubt, but as the frustrated Farage notes: the reason the Euro is in the state it is in is that they put together a completely artificial currency with countries that never fitted together on top of which was added a regulatory cost burden through excess regulation on the environment and employment legislation that is driving parts of Europe towards being a third world country; “America, you are not to blame”. The clip goes on to discuss the circular bailout fantasy, the taxpayer burden leading to a democratic revolution, and at the end of the day “this whole thing is going bust” as the likable libertarian notes that European leaders believe that “well-educated bureaucrats know better than we the poor peasants how best our lives should be led” which is the same path that led to the economic and social crash-and-burn in the Soviet Union.

An Epic Rant…

Alex Jones Interviews Webster Tarpley: The Rand Paul Fiasco – ‘The American System’ – Ron Paul – History – Greece (Video)

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For your information.


YouTube Added: 11.06.2012

Five Days Since The Spanish ‘Bailout’: You Are Here – Senior EU Official: ‘If Germany Doesn’t Make A Move, Europe Is Dead’

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– Five Days Since The Spanish “Bailout”: You Are Here (ZeroHedge, June 18, 2012):

With few (if any) natural buyers of Spanish debt (especially given the lack of CDS-cash basis now), Spanish bonds continue to crumble lower in price and higher in yield/spread. For the first time ever, 10Y Spanish bond yields have passed 575bps over Bunds – currently trading at 7.15% yield. Since the post-banking-bailout open, Spanish bond spreads have soared a remarkable 114bps and whether this is seen as the fulcrum security or Italian bonds (which are also deteriorating rapidly this morning), it would appear that just as Spiegel reports today from the G-20, via a senior EU official: “If Germany Doesn’t Make A Move, Europe Is Dead”.

European sovereign bond spread movements post Spanish bailout

PRO-BAILOUT Party Wins Greek Election

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– Pro-austerity party wins Greek election (RT, June 17, Edited June 18, 2012):

The pro-bailout New Democracy party has come out on top in Greece’s parliamentary elections, having gained 29.6 per cent of the votes. With nearly all the votes counted, the anti-austerity leftist Syriza party is trailing on 26.9 per cent.

The results have kept fears of Greece’s imminent exit from the eurozone at bay for the time being. “The Greek people today voted for Greece to remain on its European path and in the eurozone,” New Democracy leader Antonis Samaras said after his party had won, AP reports. He added that voters had chosen “policies that will bring jobs, growth, justice and security.”

The pro-bailout Socialist PASOK party came third with 12.3 per cent of the votes. The far-right Golden Dawn part won 6.9 per cent.

Read morePRO-BAILOUT Party Wins Greek Election

Will SYRIZA’s Tsipras Blow Up Europe?

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For your information.

“It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything.”
– Joseph Stalin

– Will Tsipras Blow Up Europe? (ZeroHedge, June 17, 2012):

The world’s eyes are on the Greek election, and whether or not Greeks will elect New Democracy’s Samaras (widely-assumed to be pro-bailout, pro-status quo), or SYRIZA’s Tsipras (widely-assumed to be anti-bailout, anti-status quo).

The Eurocrats have very sternly warned Greece against voting against austerity. Merkel said:

It is extremely important for Greeks to elect lawmakers who would respect the terms of the bailout.

In recent days, opinion has swung back toward the status quo, with Intrade rating New Democracy’s chances of winning the largest number of seats at 65%, and SYRIZA at just 33%.

While I cannot rule out New Democracy winning, I think that I’d flip those odds. Greece widely reviles German-imposed austerity, but fears the consequences of leaving the Euro — 85% of Greeks want to stay in. A vote for New Democracy would reflect fear of Drachmatization. Meanwhile, a vote for SYRIZA would seem to reflect the idea that through brinkmanship and the threat of Euro collapse, Greece can negotiate their way to a much more favourable bailout position.

Read moreWill SYRIZA’s Tsipras Blow Up Europe?

Fitch Downgrades Credit Rating Of 18 Spanish Banks, Financial Contagion Spreads To Italy

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See also:

– Spain Loses Final A Rating With Moodys Downgrade To Baa3, May Downgrade Further (Full Text)

– Nigel Farage: ‘Once Greece Leaves The ECB Is Bust’ – ‘The Euro Titanic Has Now Hit The Iceberg And Sadly There Simply Aren’t Enough Lifeboats’ (Video)

– Spanish bond yields at record high as Fitch downgrades 18 banks and financial contagion spreads to Italy (Independent, June 12, 2012):

Spain’s borrowing costs soared to their highest levels since the introduction of the single currency in 1999 today, as any confidence investors might have taken from Madrid’s weekend pledge to seek a bailout for its toxic banking sector drained away.

Yields on the country’s 10 year bonds shot up to 6.8 per cent this afternoon as investors frantically dumped their holdings of Spanish debt, before falling back to 6.72 per cent.

The credit rating agency Fitch added fuel to the flames of alarm by downgrading 18 Spanish banks, following its downgrade of Madrid’s sovereign debt to BBB last month. Among the Spanish lenders cut were Bankia, CaixaBank, and Banco Popular Espanol, with Fitch blaming the weakening Spanish economy, which is forecast to contract by 1.7 per cent this year and to remain in recession well into next year.

Read moreFitch Downgrades Credit Rating Of 18 Spanish Banks, Financial Contagion Spreads To Italy

Nigel Farage: ‘Once Greece Leaves The ECB Is Bust’ – ‘The Euro Titanic Has Now Hit The Iceberg And Sadly There Simply Aren’t Enough Lifeboats’ (Video)

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YouTube Added: 13.06.2012

– Farage: “The Euro Titanic Has Now Hit The Iceberg” (ZeroHedge, June 13, 2012):

In an epic rant, trumping Biderman, UKIP’s Nigel Farage appears to have reached the limit of his frustration with his ‘peers’ in the European Parliament after the Spanish bailout. Rajoy’s proclamation that this bailout shows what a success the euro-zone has been, sends Farage over the edge as he sees the Spaniard as just about the most incompetent leader in the whole of Europe (up there with favorites like Van Rompuy and Barroso). The erudite Englishman notes that by any objective criteria “The Euro Has Failed” expanding on the insane farce of Italy funding Spain’s banking bailout at a loss (borrowing at 6% to fund a loan at 3% as we discussed here). “This ‘genius’ deal makes things worse not better” as it merely drives other nations towards needing bailouts themselves and while his socialist colleagues in the room are mumbling and checking their blackberries, he reminds them that Spanish national debt will surge and that 100 billion does not solve the problem, and that if Greece leaves, the ECB is failed, is gone, and to rectify this there will be a cash call from the very same PIIS (Ex-G) that are tumbling towards the abyss. Blood pressure surges as he screams “you couldn’t make this up” concluding that “the Euro Titanic has now hit the Iceberg and sadly there simply aren’t enough lifeboats.”

Nigel Farage On The Spanish Bailout: ‘A Reinforcement Of Failure’ (Video)

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– Farage On The Spanish Bailout: “A Reinforcement Of Failure” (ZeroHedge, June 10, 2012):

While the short-term benefits can be weighed against any long-term solution a number of ways, Nigel Farage provides not just the most colorful summation of situation but also the most succinct when he refers to the ‘madness’ of ‘intervention to keep the Euro alive’ as “reinforcement of failure”. The better, and braver, in his opinion, thing to do, is to recognize that those Mediterranean countries should never have joined the Euro in the first place. As we have stated again and again, by kicking-the-can once again to prop up the euro-zone with bailout-after-bailout, all we are doing is prolonging the misery. The discussion on Sky News digs into the collateral-damage ‘strawman’ – which will happen anyway – and then ‘Red’ Ken Livingstone (an infamously socialist-leaning British politician who advocated for Britain’s joining the Euro when it was formed) now somewhat notably agrees with Nigel that “locking Europe into a decade of permanent economic malaise” adding that once the smaller countries were added to the core, “it was doomed to fail”. The two ‘odd fellows’ continue on to discuss the analogy of the USA to a United States of Europe noting that it took a civil war and a century before a common monetary and fiscal policy was accepted, adding simply that Europe’s “nations will not give up their sovereignty”.


YouTube

Spain’s $125 Billion Euro Bailout Will Not Be Enough

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– Spain’s Euro Bailout Might Boost Markets Tomorrow But Don’t be Fooled (Forbes, June 10, 2012):

Will Spain’s bailout boost the markets on Monday? As Abram Brown points out the markets are eager for good news. But there are serious question marks over the bail out. Not least that the Spanish can’t seem to agree on what they have agreed to. And Euro zone members don’t actually know how they are going to pull off this refinancing.

What they believe they have done is create a plan that will ward off contagion if the Greek election goes against the pro-austerity parties Monday week. That might be unraveling already, as Spaniards take to the streets to protest against the deal. Add in to the mix, skepticism about the size of the rescue – $125 billion is just not enough some analysts are saying. The real figure is at least double that.

Read moreSpain’s $125 Billion Euro Bailout Will Not Be Enough

Eurozone Agrees To LEND Spain Up To 100 Billion Euros

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Eurozone agrees to give away another 100 billion euros to the banksters.

– Euro zone agrees to lend Spain up to 100 billion euros (Reuters, June 10, 2012):

Euro zone finance ministers agreed on Saturday to lend Spain up to 100 billion euros ($125 billion) to shore up its teetering banks and Madrid said it would specify precisely how much it needs once independent audits report in just over a week.

After a 2 1/2-hour conference call of the 17 finance ministers, which several sources described as heated, the Eurogroup and Madrid said the amount of the bailout would be sufficiently large to banish any doubts.

“The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euros in total,” a Eurogroup statement said.

Read moreEurozone Agrees To LEND Spain Up To 100 Billion Euros

Spain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout

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– Spain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout (ZeroHedge, June 9, 2012):

After two years of denials, we finally have the right answer: Spain IS Greece. Only much bigger (it is also the US, although while the US TARP was $700 billion or 5% of then GDP, the just announced Spanish tarp is 10% of Spanish GDP, so technically Spain is 2x the US). So now that the European bailout has moved from Greece, Ireland and Portugal on to the big one, Spain, here are the key outstanding questions.

1. Where will the money come from?

De Guindos, Schauble and the Eurogroup, all announced that the sole source of cash would be the ESM and/or the EFSF. The problem with this is that the ESM has yet to be ratified by Germany, whose parliament said previously it is sternly against allowing the ESM to fund a direct bank bailout, something which just happened. Thus, the successful German ESM ratification vote, whenever it comes, and which previously was taken for granted, now appears to be far more questionable.

Which leaves the EFSF. The problem with the EFSF is that there is about €200 billion in dry powder. And this includes the Spanish quota of €93 billion, which we can only assume is now officially scrapped.

Which brings us to a bigger question: now that Spain is officially to be bailed out, what happens next. And by that we mean of course the big one: Italy. Recall that as we posted in Brussels… We Have A Problem, once the contagion spreads again to Italy, and that country also needs a bailout, it is game over. From the world’s biggest hedge fund Bridgewater:

Read moreSpain IS Greece After All: Here Are The Main Outstanding Items Following The Spanish Bailout

If The Spanish Bank Bailout Came To The U.S. …

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– If The Spanish Bank Bailout Came To The United States… (ZeroHedge, June 9, 2012):

For those curious what the latest and greatest estimate of the Spanish bank bailout, which at last count was €100 billion and growing fast, would look like in US terms, here is a rough and dirty comparison of the scale we are taking about here…

  • Spanish GDP of $1.25 Trillion : US GDP of $15.5 Trillion :: Spanish Bank Bailout of $125 Billion : US Bank Bailout of $1.6 TRILLION

A trillion here… a trillion there…

Or visually:

Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain

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– Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain (ZeroHedge, June 9, 2012):

Well that didn’t take long. The ink on the #Spailout is not dry yet (well technically there is no ink, because none of the actual details of the Spanish banking system rescue are even remotely known, and likely won’t be because when it comes to answering where the money comes from there simply is no answer) and we already have an answer to one of our questions. Recall that mere hours ago we asked: “We also wonder how will Ireland feel knowing that it has to suffer under backbreaking austerity in exchange for Troika generosity, while Spain gets away scott free.” We now know. From the AFP: “Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return, European sources said on Saturday.” And with Ireland on the renegotiation train, next comes Greece. Only with Greece the wheels for a bailout overhaul are already in motion and are called a “vote of Syriza on June 17.” And remember how everyone was threatening the Greeks with the 10th circle of hell if they dare to renegotiate the memorandum? Well, Spain just showed that a condition-free bailout is an option. Which means Syriza will get all the votes it needs and then some with promises of a consequence free bailout renegotiation. In other words Syriza’s Tsipras should send a bottle of the finest champagne to de Guindos – he just won him the election.

But back to Ireland. From AFP:

Read moreHere They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain

Spain Agrees To ‘Unconditonal’ Bank Bailout

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– Spain Agrees To “Unconditonal” Bank Bailout (ZeroHedge, June 9, 2012):

Just out from Bloomberg:

  • SPAIN AGREES TO SEEK BANK BAILOUT, EL PAIS REPORTS
  • IMF WILL SUPERVISE SPAIN BANK RESCUE PLAN, EL PAIS SAYS

And the funniest:

  • SPAIN RESCUE DOESN’T CARRY ECONOMIC POLICY CONDITIONS: MUNDO

So Spain has shockingly agreed to a bank bailout without conditions. Has Germany? The chips will commence falling, where they may, shortly. In the meantime, we are days from finding out just what Germany thinks when it has to ratify (that’s right, the ESM has still not been ratified by the one country which will fund the Spanish bailout) the direct rescue of the Spanish banks. Without conditions.

From El Pais:

Read moreSpain Agrees To ‘Unconditonal’ Bank Bailout

The Reign In Spain Is Over: Spain Capitulates Asks EU For Bankster Bailout

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– The Reign In Spain Is Over (ZeroHedge, June 5, 2012):

Spain Capitulates

Spain has now officially asked the European Union for aid for its banks. The markets seem to be responding as if the bank issue is isolated. It is not isolated. We are following the same schematic as we did with Ireland; first it was the banks and then it was the country and then the “Men in Black” showed up to take over. Spain says it is a 50 billion Euro problem and the reality is probably more like a 400 billion Euro problem. There is all kinds of cross lending between the banks in Spain and while Spain’s largest two banks have tried everything they could to isolate themselves; I predict there will be no escape for anyone. Now that Spain has asked for a bailout of their banks the European auditors will show up and I would bet large money that the values of many loans and the value of Real Estate and the securitizations tied to it will be found to have been vastly overstated. Then it will be the regional governments and their debts and the house of cards will implode. The Spanish Finance Minister kicked off the first domino this morning and we can all just stand by now and watch the rest fall.

Read moreThe Reign In Spain Is Over: Spain Capitulates Asks EU For Bankster Bailout

Spain Caves, Admits It Needs European Bailout

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– Spain Caves, Admits It Needs European Bailout (ZeroHedge, June 5, 2012):

And so those lining up at the bailout trough are now 4: remember all those lies Spain spoon-fed the gullible press that it didn’t need a European bailout as recently as yesterday? You can now forget them. From Reuters: “Spain said on Tuesday that credit markets were closing to the euro zone’s fourth biggest economy as finance chiefs of the Group of Seven major economies were to hold emergency talks on the currency bloc’s worsening debt crisis. Treasury Minister Cristobal Montoro sent out the dramatic distress signal in a radio interview about the impact of his country’s banking crisis on government borrowing, saying that at current rates, financial markets were effectively shut to Spain. Montoro said Spanish banks should be recapitalised through European mechanisms, departing from the previous government line that Spain could raise the money on its own and and prompting the Madrid stock market to rise. But his comments on Spain’s borrowing sent the euro down after the 17-nation European currency earlier hit a one-week high against the dollar on expectations that a conference call of G7 finance ministers and central bankers may hasten bold action.” Well, Germany got its wish: it got Spain to admit it is broke. Just as it wanted – because remember: all Germany is, is a true lender of last resort unlike the ECB: after all they are the decision makers. And Germany knows very well that it needs Europe desperate when it is forced to accept any conditions to the German DIP loan that Schrodinger Schauble proposes. Which means forget anything positive will come out of the G7, and certainly forget anything actionable will come out of the ECB’s June 7 meeting. If anything, things will first get much worse, before things get better. And finally, don’t forget just who benefits the most from EURUSD at parity or lower… That’s right: Germany.

Read moreSpain Caves, Admits It Needs European Bailout

Why Do Economists Say that Ron Paul Would Be the Best President for the Economy?

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– Why Do Economists Say that Ron Paul Would Be the Best President for the Economy? (ZeroHedge, June 3, 2012):

A number of well-known economists – such as Marc Faber, Thomas Woods and Paul Craig Roberts – support Ron Paul, believing that he would help the American economy more than any other presidential candidate.

Why?

I interviewed one well-known Ron Paul supporter – Dr. Walter E. Block – to find out.

Block is an Eminent Scholar Endowed Chair and Professor of Economics at Loyola University in New Orleans, received his PhD in economics from Columbia University, and is a senior fellow at the Ludwig von Mises Institute. He has written 8 books and more than 300 scholarly articles and reviews, and co-edited dozens of books on economics.

Read moreWhy Do Economists Say that Ron Paul Would Be the Best President for the Economy?

Europe’s Bailout Costs In One Chart: €2 TRILLION … And Counting

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– Europe’s Bailout Costs In One Chart: €2 Trillion And Counting (ZeroHedge, June 3, 2012):

This chart, better than any we have seen so far, summarizes just how much has been injected already to preserve the Eurozone from collapse.

This is what is known as a sunk cost, because last time we checked (and just as we explained back in March at the market highs when everyone was euphoric that Europe is now fixed) nothing has been fixed, and Europe is one ‘rogue’ democratic vote away from an EMU exit, and thus oblivion (or so they said last year, now everyone is prepared for a Greek departure, or so they say now, expect for the Greeks of course – they go straight to the 10th circle of hell and do not pass go). The truth is that by the time the status quo finishes its extend and pretend game, which incidentally has only one real outcome, the €2 trillion spent to date, will be orders of magnitude higher…

Source: Brandywine Global High Yield Perspectives