Tag Archives: ECB

Mish/ Mike Shedlock – Another Meaningless Nannycrat Rumor : Europe Mulls “Secret Plan For New Europe” – 4 June 2012

A story is making the rounds that suggests leaders are going to get together and hammer out a “fiscal union”.

The story appears to have originated on the Welt Online, a German tabloid. The article mentions a Secret Plan for a New Europe. Continue reading

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John Ward – Crash 2 : Why Draghi’s Stron Words On The Euro Presage The First Big Banking Collapses. The Over Beveraged Banker Staggers in, Stage Right – 1 June 2012

“Her-huh…I guess Wall Street wen’ out an’ got drunk” (GW Bush, 2009)

When Mario Draghi directly says, in front of a phalanx of media and snappers, that without concerted action now the euro is dead, then you know he’s trying to do two things: first, stir the poetry nutters in Brussels into some form of action that isn’t entirely dyfunctional; and second, use that to slow down the melting process in order to keep attention away from the real deal: the banking collapse, and the entry of $700 trillion of derivates into the real world. It promises to be quite some birth. Continue reading

John Ward – Spanish Bankia Ruse : Draghi Bats The Stinky Ball Back To Madrid – 30 May 2012

“But eeth oonly leetle beet of thyeet, Mario…”

I’m amazed it’s taken this long to be honest, but Mario Draghi’s ECB yesterday told the chaps at Bankia thanks but no thanks in relation to their planned sh*t-for euros exchange via the ‘recapitalised’ Spanish bank. As I posted earlier this week, he had no choice: otherwise every bank from Arnhem to Zaragossa would’ve been at it. Continue reading

Mish/ Mike Shedlock – Stubborn Stupidity, Fantasyland Thinking, Hopeless Bluffs – 30 May 2012

The Financial Times says Madrid in ‘game of chicken’ with EU.

I disagree. I think Spain’s prime minister Mariano Rajoy is a stubborn fool engaged in Fantasyland thinking, unable to think straight.

The issue regards a proposed Ponzi financing scheme to recapitalize Spanish banks. Continue reading

Mish/ Mike Shedlock – Ponzi Financing In Greece Continues; Greek Banks Receive €18bn Transfer – 29 May 2012

Greek banks have been shut off from regular ECB liquidity operations due to lack of sufficient collateral. Today the Banks have that collateral thanks to a disbursement of funds from the EFSF which in turn will be used as collateral for more loans from the ECB.

If this makes little sense to you it is because it should not make any sense to anyone. It is another act of desperation in a long line of desperate acts. Continue reading

Mish/ Mike Shedlock – Spain’s Plans To Recapitalize Bankia Will Put Germany, ECB At Risk; When Does The Ponzi Scheme Collapse? – 28 May 2012

Inquiring minds are interested in the recapitalization plans for the Bankia. Please consider this chain of posts.

ABC News reports Spain’s Bankia set for massive bailout.

Spain’s fourth-biggest bank Bankia says it is certain of securing the 19 billion euros ($24 billion) in state aid it is seeking in the largest bank bailout in the country’s history. Continue reading

Mish/ Mike Shedlock – “ECB Will Be Insolvent And Costs May Exceed 1 Trillion Euros” Says IIF Director; If The ECB Prints, Would Germany Exit The Euro? – 26 May 2012

According to IIF director Charles Dallara in a Bloomberg interview, “ECB will be insolvent if Greece were to exit the euro. Europe would have to first and foremost recapitalize its central bank.”

Excuse me for asking but how would they attempt to do that? Print Euros?

Please consider Dallara Says Greek Euro Exit May Exceed 1 Trillion Euros

The cost of Greece exiting the euro would be unmanageable and probably exceed the 1 trillion euros ($1.25 trillion) previously estimated by the Institute of International Finance, the group’s managing director said. Continue reading