Doomed to Fail



Yep, I am talking about the EU.  It is now just a matter of time before the second most recent attempt at socialism fails.  (The most recent is still underway led by Obama). 

 

We know that history repeats itself.  Can we have a modern day crisis in Europe

without another World War?

In the past several hours, wsj.com  has posted an article highlighting how, "critical differences between European leaders threatened to stymie efforts to combat the euro zone's debt woes, despite mounting international pressure to contain a broadening crisis."  You know what this means?  It means there is a  reason we had 2 World Wars in less than 50 years fought in Europe proper. 

You see, the Angry Trader is generally mad, but he recognizes that people suck.  It also means that these fucks are going to sit by on their asses and principles, coupled with the belief that they are standing up for what their constituents want, even though the EU is going to zero and it's going to take the global economy with it.  In America, we have a phrase for that, its called biting off your nose to spite your face.  

The heart of the problem is that..."after a weekend of tense meetings among world finance officials here, euro-zone leaders were weighing options to maximize the size of their bailout fund by borrowing against it." 



Fuck Austerity, they chant....



BORROWING AGAINST IT.  AGAINST THEIR LOAN.  THEY WANT TO BORROW AGAINST THEIR LOAN, HAHAHAHAHAHAHA.  THEY WANT TO ADD MORE DEBT IN A BAILOUT WHERE EVERYONE WHO HAS A CLUE UNDERSTANDS THE SPENDING HAS TO STOP!!!

Some of the European officials, a.k.a "retards" in Europe, " hinted at their options to respond with new force. Leveraging the bailout fund by borrowing against it could enable it to cover investors' first losses. That money could be used to buy debt on the market or inject capital into banks."

BORROWING AGAINST IT. AGAINST THEIR LOAN. THEY WANT TO BORROW AGAINST THEIR LOAN, HAHAHAHAHAHAHA. THEY WANT TO ADD MORE DEBT IN A BAILOUT WHERE EVERYONE WHO HAS A CLUE UNDERSTANDS THE SPENDING HAS TO STOP!!!

The Journal also states, "officials are also discussing how to use the European Central Bank's balance sheet—with trillions of dollars of lending capacity—to protect the euro zone further by buying more debt or backing debt. Some of the options could be used to help prevent a Greek default, or even attempt to insulate the rest of the euro zone from a Greek default by pushing capital into European banks and building a firewall around larger vulnerable euro-zone nations like Spain and Italy."

This would be worth exploring except for the fact that default is already in the cards for Spain and Italy.  Just like we here in the good 'ol USA waited too long to take draconian measures to stem a complete and utter global financial failure, the EU and then ultimately the individual sovereign nations will continue to dicker amongst themselves until it is too late.   In America we also call this, robbing Peter to pay Paul...


The good news is that all 17 nations of the EU need to approve the agreement, where they would seek to broaden the bailout fund and let trillions of dollars provide a boost to rescue governments and banks.  The problem again is we cannot be levering bailouts. 





"We're Fucked"

 

Most notably, Germany is not too keen on the idea.  They know 1. It's a really really BAD idea and 2. If the shit hits the fan, they are on the hook for essentially all of it.  Again, when The Angry Trader is defending anything German, there is a fucking problem...and we are defending Germany. 

Moreover, "policy makers are "focused on their own internal restraints, so that we don't have the outcome that we need," Antonio Borges, head of the International Monetary Fund's Europe department, said Sunday. While key players were understandably acting in self-interest, he said, it was generating "disastrous" collective results."

Did you get that?  Disastrous collective results.  Scary fucking shit and it's coming to a nation across the pond very very soon. 

So each nation is going to do what they need to do for themselves and essentially fuck the EU.  They will default and the process will begin.  The EU is doomed.  It always was and it will be very interesting to see it unravel.

Stay tuned and sell the rallies.

--The Angry Trader.