GSC - ÛnìCrêdit Sec.: It's the Europocalypse

[decoy409]

Whoops! We have to keep watch on this beauty!

[decoy409]

Say,get a grip. That above has been covered over and done over a month ago.

Sorry you are running late. No foul.

[decoy409]

Well I see there is no rebuttal in the many links to a positive spin on the houseing report.......of course you could always just state something with no backing and all should listen.

[decoy409]

Triple Scoop,coming right up!

[Virgil Showlion]

Article to be found here.

Teaser is (bold by me):

Either the Yes Men have infiltrated Italy's biggest, and most undercapitalied, bank, or the stress of constant, repeated lying and prevarication has finally gotten to the very people who know their livelihoods hang by a thread, and the second the great ponzi is unwound their jobs, careers, and entire way of life will be gone. Such as the head of UniCredit global securities Attila Szalay-Berzeviczy, and former Chairman of the Hungarian stock exchange, who has written an unbelievable oped in the Hungarian portal Index.hu which, frankly, make Alessio "BBC Trader" Rastani's provocative speech seem like a bedtime story. Only this time one can't scapegoat Szalay-Berzeviczy "naivete" on inexperience or the desire to gain public prominence. If someone knows the truth, it is the guy at the top of UniCredit, which we expect to promptly trade limit down once we hit print. Among the stunning allegations (stunning in that an actual banker dares to tell the truth) are the following: "the euro is “practically dead” and Europe faces a financial earthquake from a Greek default"... “The euro is beyond rescue”... “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits.”...."A Greek default will trigger an immediate “magnitude 10” earthquake across Europe."..."Holders of Greek government bonds will have to write off their entire investment, the southern European nation will stop paying salaries and pensions and automated teller machines in the country will empty “within minutes.” In other words: welcome to the Apocalypse...

A must-read for anyone who thinks this whole Greek thing will "just blow over"...

[usaone]

I dont know anyone who thinks that this Greece thing will blow over.

Also if the Euro collapses why would everyone be running to ATM's to get their Euro's?

[Virgil Showlion]

The first stage is the Greek banks collapsing (they hold a vast amount of Greek debt that would be rendered nearly worthless). That would set off an immediate need to shore up more tier 1 capital—hence a liquidity crunch—followed by a bank run as the greater Greek population realizes it's first-come-first-serve for their banks' dwindling reserves.

[usaone]

en.wikipedia.org/wiki/1997_Asian_financial_crisis

We survived!

[usaone]

en.wikipedia.org/wiki/1998_Russian_financial_crisis

We survived!

[Virgil Showlion]

From your article:

...the International Monetary Fund (IMF) stepped in to initiate a $40 billion program to stabilize the currencies of South Korea, Thailand, and Indonesia, economies particularly hard hit by the crisis...

The Europeans and Fed have thus far thrown 1.6 trillion Euro at the problem and nada.

We're talking apples and orchards here.

ETA: From your Russian article:

...It is estimated that between 1 October 1997 and 17 August 1998, the Central Bank expended approximately $27 billion of its U.S. dollar reserves to maintain the floating peg.

Again: $27 billion. $2.3 trillion.

[rovo]

A couple of thoughts on this.
1. If the Euro tanks, the dollar could soar and become the common European currency.
2. Gold and silver could / would be liquidated into dollars in Europe.
3. The Fed is prepared to support the US banking industry if the Euro fails.
4. U.S. businesses would suffer as the European customers disappear.

[kman]

Anybody have a copy of Franks first post in the piigs thread?

[usaone]

And investment money that would be heading to europe would be diverted here.

FTI

[usaone]

The Russian stock markety DROPPED 75% over a few month period.

Coal miners went unpaid...ect...ect...ect...

We survived!

Virg do you even remember that happening?

[Virgil Showlion]

As I was 15 years old at the time, I had other concerns that the Russian stock market.

But will you at least acknowledge that there is two orders of magnitude difference between the crisis then and the crisis now. Acknowledge it and dismiss it as irrelevant if you wish, but an acknowledgement would restore some of my faith in humanity.

[usaone]

Is it a bigger problem? Yes.

The end of the world? No.

When I was 15 I didn't know what the stock market was. Too busy chasing girls.

[usaone]

I don't think it's irrelevant. It's a bad business cycle.

It's the 1970's on steroids.

[neoh]

A green shoot from September 29, 1930:
www.boatnerd.com/

"September 29, 1930, for the first time in the history of Pittsburgh Steamship Company, the boats of the fleet loaded more than one million tons in a seven-day period. The 64 Pittsburgh boats loaded 1,002,092 tons of cargo between 9/23 and 9/29. "