How stupid can people get?
- American among the first gored in Spain’s bull run (USA Today, July 13, 2013)
- Spanish Banks Petition To Convert Historical Losses Into Bank Capital (ZeroHedge, July 12, 2013):
In what has to be the most insane level of desperation, the Spanish banking system is lobbying to turn its deferred tax ‘assets’ into fungible capital to meet new stricter Basel III requirements. In other words, the Spanish banks believe that capitalizing historical losses provides a fungible ‘stash’ of capital against future losses… Following this morning’s round of incredulity from the Spaniards, we have no words…
Spanish banks are lobbying the government to turn more than two thirds of their 50 billion euros ($65 billion) in deferred tax assets into state-backed tax credits that would boost their capital but add to the state’s debt, three banking sources said.
The so-called deferred tax assets (DTAs) are created when a bank makes losses or writedowns that it can offset against future tax bills when it returns to profit.
Under stricter Basel III rules on capital, being phased in as of January 2014, most forms of DTAs will no longer be allowed to count towards capital, while tax credits will be.
Spanish banks are asking the government to convert between 15 billion and 30 billion euros of their DTAs into tax credits, the banking sources said.
- Meanwhile, In A (European) Galaxy Far, Far Away… (ZeroHedge, July 10, 2013):
Submitted by Bill Blain of Mint Partners,
Another day of fraught wonderment ahead of us. What does it all mean? China economic data increasingly suggests there is a serious problem, (that’s still a few points below crisis – but recent experience suggests the politics of mobs can turn ugly with surprising speed!). On the other hand, yesterday’s US auctions went swimmingly well – so we can all relax about the taper? Er.. no. And while Spain gets a cheeky 15-yr bond issue completed (driven on the back of a large single order we strongly suspect), the Italians then get downgraded because of the weakening economy, deteriorating competitiveness and 1.9% negative growth outlook… “You can’t make this stuff up,” comments Chris, my head of Govvie Trading. Continue reading »
- Spain’s Debt Surges To Record High At Accelerating Pace (ZeroHedge, June 14, 2013):
Somewhere deep down inside the European Union’s leaders must know how foolish they are with their constant proclamations that the worst of the crisis is over and that growth will return any moment now. For now, the realists in the market have to be content with hard data, and as AP reports, Spain’s central bank reports the troubled nation’s debt jumped to a record 88.2% of GDP in Q1 2013. The year-over-year rise is also the fastest on record – so no green shoot there as the bank notes it expects the debt burden to rise to 90.5% of GDP by the end of 2013 (but may revise that forecast – up). The raw numbers are awesome. Spain’s debt was EUR 922.8 billion at the end of March – up 19.1% from a year earlier and with unemployment at 27.2% and a fourth year of recession, the more-than-doubling of debt-to-GDP in the last five years suggests the ‘OMT call’ may be getting closer. The stagflationary slump in Europe (inflation rising faster than expected as growth lags) continues with nearly 20 million people out of work across the region.
- Europe’s EUR500 Billion Quasi-Quantitative Easing (ZeroHedge, June 12, 2013):
Submitted by Mark J. Grant, author of Out of the Box, Five Eurozone countries now have loans for half a trillion Euros.
These members of the Euro currency union are receiving loans from the one of two bailout funds which are financed by the other 12 Eurozone members. On top of that are the emergency loans from the International Monetary fund (IMF) and bilateral loans from the solvent countries to the bankrupt nations. Continue reading »
Conspiracy theorists claim it is a shadow world government. Former leading members tell the Telegraph it was the most useful meeting they ever went to and it was crucial in forming the European Union. Today, the Bilderberg Group meets in Britain.
- Bilderberg Group? No conspiracy, just the most influential group in the world (Telegraph, June 6, 2013):
“The abuse is terrible,” said Peter Mandelson, leading the walking party through the throng of protesters and carrying the group’s uniform orange ski jacket under his arm.
Amid the din, Peer Steinbruck, the former German Finance Minister, pointedly refused to break off his conversation with Thomas Enders, the head of defence giant EADS. Behind him, Eric Schmidt, the Google chairman, picked up the pace along the narrow road and kept his eyes fixed on the Suvretta hotel ahead. Franco Bernabe, the vice chairman of Rothschild Europe, grinned through the chorus of booing and chanting in German down megaphones, before ducking under the police tape and into the safety of the hotel’s grounds.
It was June 2011. Demonstrations were sweeping through the stricken eurozone, China and North Africa. And in tranquil St Moritz, high in the Swiss alps, half a dozen of the most powerful men in the West had taken a break from a weekend of intensive and strictly confidential debate to walk in the woods, when their paths crossed with the protesters who had come from around the world to keep an eye on them.
The gathering was entirely innocent, the walking party would insist. But what were they doing there?
No such encounters will take place in Watford this week, as the Bilderberg, the annual conference for 140 of the world’s most powerful, meet for four days at The Grove, a £300-a-night golf hotel close to the M25. The entire hotel has been booked out, and a high fence erected around the exclusion zone. Armed checkpoints have been set up on local roads, and locals must show their passports to enter their own driveways. The Home Office may foot the bill. A US news site dedicated to uncovering conspiracies had booked a room for last week but were told by phone not to turn up.
Tags: Banking, Barclays, Bilderberg, Bilderberg 2013, David Petraeus, Deutsche Bank, Economy, EU, Europe, George Osborne, Global News, Goldman Sachs, Government, Henry Kissinger, James Wolfensohn, Josef Ackermann, Klaus Kleinfeld, Luis de Guindos, Mario Monti, Paulo Portas, Peter Mandelson, Peter Sutherland, Peter Thiel, Politics, Portugal, Richard Perle, Robert Rubin, Robert Zoellick, Society, Spain, U.K.
- 18 Signs That Massive Economic Problems Are Erupting All Over The Planet (Economic Collapse, June 2, 2013):
This is no time to be complacent. Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine. In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing. Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer. Just look at what is happening in Europe. The eurozone is now in the midst of the longest recession that it has ever experienced. Just look at what is happening over in Asia. Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control. One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have “kicked the can down the road” by recklessly printing money and by borrowing money at an unprecedented rate. Unfortunately, the “sugar high” produced by those foolish measures is starting to wear off. We are going to experience a massive amount of economic pain along with the rest of the world – it is just a matter of time.
But for the moment, there are a lot of skeptics out there.
For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead.
Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe.
The following are 18 signs that massive economic problems are erupting all over the planet… Continue reading »
Tags: Australia, Ben Bernanke, Collapse, Cyprus, Economy, EU, Europe, Fed, Federal Reserve, France, Global News, Government, Greece, Italy, Japan, Marc Faber, NYSE, Portugal, Quantitative Easing, Riots, Spain, Stock Market, U.S., Unemployment, Wall Street
- The Full List Of 2013′s Bilderberg Attendees (ZeroHedge, June 3, 2013):
The only thing more ominous for the world than a Hindenburg Omen sighting is a Bilderberg Group meeting. The concentration of politicians and business leaders has meant the organisation, founded at the Bilderberg Hotel near Arnhem in 1954, has faced accusations of secrecy. Meetings take place behind closed doors, with a ban on journalists. We suspect the agenda (how the US and Europe can promote growth, the way ‘big data’ is changing ‘almost everything’, the challenges facing the continent of Africa, and the threat of cyber warfare) has been somewhat re-arranged as market volatility picks up and the status quo begins to quake once again. The annual gathering of the royalty, statesmen, and business leaders, conspiratorially believed to run the world (snubbing their Illuminati peers and Freemason fellows), will take place this week at the Grove Hotel in London, England.
The Telegraph provides the full list of attendees below – for those autogrpah seekers – including Britain’s George Osborne, US’ Henry Kissinger, Peter Sutherland (the chairman of Goldman Sachs), the Fed’s Kevin Warsh, Jeff Bezos?, Peter Thiel, Italy’s Mario Monti, and Spain’s de Guindos.
Bilderberg delegates in full
- Chairman: Henri de Castries, Chairman and CEO, AXA Group
- Paul M. Achleitner, Chairman of the Supervisory Board, Deutsche Bank AG
- Josef Ackermann, Chairman of the Board, Zurich Insurance Group Ltd
- Marcus Agius, Former Chairman, Barclays plc
- Helen Alexander, Chairman, UBM plc Continue reading »
Tags: Barclays, Bilderberg, Bilderberg 2013, David Petraeus, Deutsche Bank, Economy, George Osborne, Global News, Goldman Sachs, Henry Kissinger, James Wolfensohn, Josef Ackermann, Klaus Kleinfeld, Luis de Guindos, Mario Monti, Paulo Portas, Peter Mandelson, Peter Sutherland, Peter Thiel, Portugal, Richard Perle, Robert Rubin, Robert Zoellick, Society, Spain, U.K.
- The Rout In Spain (ZeroHedge, May 24, 2013):
From Mark Grant, author of Out Of The BoxThere Are Those Weeks
The Rout in Spain
Overnight the shares of Bankia plunged 51.4%. This, by any definition, is a rout. The citizens of Spain had bought preferred shares, hybrid bonds on the basis of an “implied guarantee” from the sovereign. No such luck. It had been a tout sold by the bank and guaranteed by no one. Now the owners are suffering the disastrous consequences.
Many European analysts had suggested that the swap out of these instruments into equity would drop the price of the stock to about 1.35 Euros but reality emerged today as the equity price plunged to 0.68 Euros. The shares traded today were forty-two times the normal average trading volume and indicated the size of the problem. The stock has lost 90% of its value since May 6.