The European crisis is likely about to take a big turn for the worse (ZeroHedge)

[ThePythonicCow]

From Zerohedge (http://www.zerohedge.com/news/shocking-development-ecb-demands-impairment-senior-spanish-bondholders-eurocrats-resist) a few hours ago:





In Shocking Development, ECB Demands Impairment For Senior Spanish Bondholders; Eurocrats Resist

In a landmark shift in its bank "impairment" stance, the WSJ reports that "in a sharp turnaround" the ECB has advocated the imposition of losses on senior bondholders at the most "damaged" Spanish savings banks, "though finance ministers have for now rejected the approach, according to people familiar with discussions." The WSJ continues: "The ECB's new position was made clear by its president, Mario Draghi, to a meeting of euro-zone finance ministers discussing a euro-zone rescue for Spain's struggling local lenders in Brussels the evening of July 9. It marks a contrast from the position the central bank adopted during the 2010 bailout of Irish banks--which, like Spain's, were victims of a property meltdown--when it prevailed in its insistence that senior bondholders in bailed-out banks shouldn't suffer losses." Needless to say, if indeed the fulcrum impairment security is no longer the Sub debt, but Senior debt, as the ECB suggests, it is only a matter of time before wholesale European bank liquidations commence as the ECB would only encourage this shift if it knew the level of asset impairment is far too great to be papered over by mere pooling of liabilities (think shared deposits, the creation of TBTF banks, and all those other gimmicks tried in 2010 when as a result of Caja failure we got such sterling example of financial viability as Bankia, which lasted all of 18 months). It also means the European crisis is likely about to take a big turn for the worse as suddenly bank failures become all too real. Why? Senior debt impairment means deposits are now at full risk of loss as even the main European bank admits there is no way banks will have enough assets to grow into their balance sheet.

[Rocky_Shorz]

who ever expected this to turn painful for the 1%... :flypig:

they are realizing the middle class has been sucked dry...

:popcorn::pop2::pop2::fans:

[Lazlo]

What's really frightening is that this has a very real potential of negatively impacting everyone and everything you know but it seems as if no one is paying attention.

The MSM is stuck on beating the war drums in Syria...
Yes it's serious, but it's an engineered problem

Pop media is caught up in the latest hollywood scandal...
Bread and circuses for the sheeple

And even the alt community is throwing page after page at Drake.
I thought that July 4th was rather uneventful

If the banking system experiences another shock, it may not be your neighbor out of work this time, it may be you. The Black Swans are circling like vultures.

[Rocky_Shorz]

funny you should mention Black Swans, one was floating in the golf course lake when I walked the dogs this evening...

the winds of change are an X class Flare that has been redlining for 33 hours...

if I traded Forex, I'd say U$D is a pretty safe bet at this moment...

[Ron Mauer Sr]

I think it is time for me to maintain no more than $100 in bank.
If the bank takes a holiday cash will not be available, not even from a safety deposit box unless one has keys to the front door and more.

On the positive side of an economic collapse, without money the cabal may find it more difficult to pay their minions who carry out their agenda of control, bribes, threats, tyranny, death and destruction.

[Lazlo]

funny you should mention Black Swans, one was floating in the golf course lake when I walked the dogs this evening...

the winds of change are an X class Flare that has been redlining for 30 hours...

if I traded Forex, I'd say U$D is a pretty safe bet at this moment...

I had a really good Aurora show this morning. Green and bright enough that it made the northern sky look like a false sunrise. A couple of hot spots and vertical ribbons as well.

The scary thing about the USD is that the banks are so cross collateralized that we probably would only have a couple of weeks after the excrement / rotating thingy encounter before it started to settle on this side of the pond.

RMauser, I agree. I convinced my father in law to buy some silver, and then he put in a safe deposit box :doh:

[Rocky_Shorz]

let's put it into perspective...

knowing $7-800T are in circulation between the banks, Spain banks have always had terrible ranking by MTNs, so very few were ever bought...

all this article states is any elite that backed the banks are no longer protected...

now a good financial sleuth would look back and see who has been dumping the bonds that are about to become worthless before this announcement...

Inside trading at this level are the ones we should be stuffing in our left hands... ;)

[Rocky_Shorz]

What's really frightening is that this has a very real potential of negatively impacting everyone and everything you know but it seems as if no one is paying attention.

If the banking system experiences another shock, it may not be your neighbor out of work this time, it may be you. The Black Swans are circling like vultures.

you still don't seem to understand, the reason they are trying to spread fear is if another shock hits Bankers will be out of work and they know it...

They have $800 Trillion they are playing with, and a world population that ranks bankers lower than lawyers...

bankers and wall street aren't brave, except in spending other people's money...

they have so much stacked away that if the world ended they'd still have more money than all other churches combined... ;)

this is all to talk the public into giving them more money to keep them safe, pure extortion...

[Mulder]

On one hand, there has been so much talk of the "collapse" that it will not be a surprise to see it actually happen, but on the other hand there will be so much pain - especially in big expensive cities that I doubt anyone will want to live through what will happen during the collapse - e.g. many people starved during the 1930s - remember the famous novel ("The Grapes of Wrath") where the new mother breast feeds milk to a hungry man? Terrible despair will come upon us.

[Rocky_Shorz]

hey Paul I had to see more, this is in the article...


In the July 9 meeting, Mr. Draghi argued in favor of including senior bank creditors in burden-sharing between taxpayers and investors in the case of Spain, three people familiar with the discussions said. Two said Mr. Draghi favored forcing losses on senior bondholders only when a bank was pushed into liquidation.

This would mean senior creditors would be safe in cases where a bank was merely being downsized—so far the most common way national authorities dealt with struggling banks. In Spain, in any case, larger banks are expected to continue operations after restructuring and wouldn't have been affected...
... (http://online.wsj.com/article/SB10001424052702303612804577528663115746788.html?mod=googlenews_wsj)

[Rocky_Shorz]

after looking into who has been dumping their bonds, now, they are telling people not to buy just before they go on Sale...


http://live.wsj.com/video/will-the-euro-zone-collapse-on-thursday/3B34AAF5-C927-4E93-BDE8-23390111599A.html


so now the Bonds are going to go for pennies, and Rothschild's cronies will be at the front of the line to buy them all up...


pure hogwash I say... ;)

[trenairio]

We'll wait and see if the new European Central Bank can carry the PIGS (portugal, ireland, etc.). It seems its been approved, and might be the real tool for a "intentional demolition".

[Molope]

Im Spaniard and all i can say is that people is on the streets rioting kids being hit by police old men and woman too.Our economy is falling apart while the goverment is making little by little Spain again into a feudal society because they will make the 90% of the population poor and only the rich people will prevail.When the new pack of reforms was approved on the parlament one of the deputies of the ruling party said on mic "**** them" that was headed to the Spain population that doesnt have a job.They have made a law that if we go out of the country we wont be paid the minimum salary when theres people job less.We have to pay for almost all the medicines so we are turning private... So yeah Absolutist Spain here we go....

[Operator]

you still don't seem to understand ....

They have $800 Trillion they are playing with, and a world population that ranks bankers lower than lawyers...
....
they have so much stacked away that if the world ended they'd still have more money than all other churches combined... ;)


If you have a lot of something that isn't worth a d**n thing you still end up having nothing.

http://growabrain.typepad.com/photos/uncategorized/carrot_stick.jpg

Only when the donkey BELIEVES there is a carrot it will go along.

I think the image that money has any VALUE is fading in the eyes of the masses.

[Kindred]

I've said it before, and I'll say it again.

It Doesn't Matter what Any of these 'financial institutions' do.

It Doesn't Matter what NATO does. Or, the US for that matter. Nor Saudi Arabia, or any of these 'political enclaves'.

It's ALL a 'show'... to keep The People focused on Something, OTHER than What they Should be Focusing On...

Their Fellow beings, and What They Are Doing to Help One Another.

Ignore the 'men in suits', and All their machinations. (Shut Off the teevee - better yet, throw it out the window!)

Incite NO violence, as it only plays into 'Their' hands.

Only Through The PEACEFUL UNITY of The People, will Any True Change occur.

WE must be the Change we wish to see in our world.

In Unity, Peace and Love

[Rocky_Shorz]

you still don't seem to understand ....

They have $800 Trillion they are playing with, and a world population that ranks bankers lower than lawyers...
....
they have so much stacked away that if the world ended they'd still have more money than all other churches combined... ;)


If you have a lot of something that isn't worth a d**n thing you still end up having nothing.

http://growabrain.typepad.com/photos/uncategorized/carrot_stick.jpg

Only when the donkey BELIEVES there is a carrot it will go along.

I think the image that money has any VALUE is fading in the eyes of the masses.

I think it is more like everyone had money, but the Bank Heist took it all away stealing from everyone to stay afloat...

2008 decimated the middle class, now they have joined the ranks of the poor, and from what I am reading, now the 1% is being drained...

soon it will be 100% of the world standing against a handful of criminals...

8 billion versus 50...

I think we can take em...

[silviog]

Hi, Im from Portugal (Europe).
The rating agencies are scam, they are working for BIG CORPORATIONS, it's all a scam.
This economical global crisis is a SCAM.
Watch the documentary «Inside job».

I don't remember the specific date, but this crisis started when in U.S.A the Lehmon brothers and other banks, start having problems, than it spreads to Europe.
Greece start having problems, Than Portugal, and Spain.

my english is not perfect, sorry, and Im writing in my job, lots of noise and phone calls. I must write faster.

The rating agencies like «moody's» and «standard and poor's» are manipulating the rating levels of the european countries and banks,
its all a scam,.
For example they lower the rating of Luxembourg, this is non-sense, bacause Luxemburg it's the European country with the higher economiy level, very secure economy, they have lots of business agencies there and also «offshore accounts», billions $ of euros there!
I have family there, I know what im talking.

The I.M.F (international monetary Fund) it's also "eating" the european countries, they offer "virtual money", and in exchange they receive REAL money from our bills and taxes.

They give a loan of ..about 90 million euros to Portugal, but it's virtual cash transferred to the Banks only.
we are not having any changes here, there are more and more unenmployment and poverty, the prices of food increasing, prices of transports,
hospitals and health centers closing, schools closing.
all because this financial scam.

We have lots of GOLD here at Portugal, more than 300 tons of gold, and we also have a gold mine in «Aljustrel», a Canadian company will explore our gold,
investigate that, is real.
We only are a "poor" country because of the lies of our government and the I.M.F.

regards

[GlassSteagallfan]

All the more reason to unite behind HR 1489 aka Glass Steagall. Call your lame ass congressman or woman.

"Give me control of the nations money, and i care not who writes her policies"