Europe'S Astounding Level Of Debt

[fritter1970]

The following are comments (by a veteran commodities broker) highlighting the astounding amount of money required to keep Europe afloat. She believes European collapse will occur before Christmas:

Well, if anybody out there understands fourth grade arithmetic you know from metaphysical certitude that Europe is done. Europe is mathematically impossible. It cannot be saved. You want to make a start. You even want to make a start at trying to bail out Europe we are talking $25 trillion just to start. And it would then—if you were going to bail out the entirety of Europe—you would now be talking about hundreds of trillions of dollars. Okay, people, there isn’t that much wealth or money on the surface of the earth. The total gross domestic product of the entire planet earth is I think just under $70 trillion. And we are talking about in excess of $100 trillion to bail out Europe? This is now mathematically impossible. These people have so leveraged themselves and so leveraged these governments in these countries giving their brain dead citizenry free hand outs and entitlements that it is now mathematically impossible to save the paradigm. It's not a matter of if the global financial system is going to collapse. Oh, it's going to collapse. You better trust and understand that. It's just a matter of when. And these piddling little maneuvers that these people are making that the Fed is doing. Oh, we are going to give Europe some money. Okay. What I saw this morning, what the Fed is getting ready to do in terms of Europe, is keep Europe going for another seven days. Well, fantastic. Thanks for that. That is literally the brain dead mindset of these politicians. All they are doing is looking to kick the can down the road. At first it was kick the can down another 10, 12 years. Then it is kick the can down the road for another year. And then it was well, let’s kick the can down the road for another few months. Now we're literally to the point where all we can do is kick the can down the road for a matter of a few days. It's not going to make it. I will be very surprised if we make it until Christmas."

- Ann Barnhardt

link http://www.financialsense.com/contributors/2011/12/02/ann-barnhardt/interview-transcript

I can back up her comments with the view I have heard from the guys on the trading floor. The guys in the trenches. The talk is that the reason there was an unprecedented coordinated funding move by Western central banks late last week - ie. The Fed, The JCB, The ECB etc - was because Europe was teetering on the edge, literally only hours away from collapse.

Edited December 7, 2011 by Maestro
Added quote tags; undid changes to quoted text.

[GreenSnapper]

That chick needs some professional help. Does she take drugs or does she just drink?

My àss....

[Pedzie]

That chick needs some professional help. Does she take drugs or does she just drink?

My àss....

I think maybe both from the sound of it

[fritter1970]

That chick needs some professional help. Does she take drugs or does she just drink?

My àss....

I think maybe both from the sound of it

Interesting feedback. Deja Vu all over again. Sheep just like yourselves had the EXACT same opinion when it was proposed that the sub-prime mortgage market would cause a Global Financial Crisis.

Consider the size of the exposure that just U.S. banks have to derivatives. It is over 250 Trillion dollars. Then consider that the European banks are in an infinitely worse position.

[Pedzie]

That chick needs some professional help. Does she take drugs or does she just drink?

My àss....

I think maybe both from the sound of it

Interesting feedback. Deja Vu all over again. Sheep just like yourselves had the EXACT same opinion when it was proposed that the sub-prime mortgage market would cause a Global Financial Crisis.

Consider the size of the exposure that just U.S. banks have to derivatives. It is over 250 Trillion dollars. Then consider that the European banks are in an infinitely worse position.

I understand what you are saying, the ' whole' of Europe does not need bailed out at this time, Euro banks are not as heavily involved in derivatives as US banks, especially German banks whom mostly rely on traditional banking practices.

With the coming EU summit on Friday and 'Merkozy' announcing further fiscal integration I'm sure the euro will see beyond Christmas.

[Naam]

Ann Barnhardt

is a nut and due to the MF failure thoroughly pissed off. her ranting about Europe's "hundreds of trillions" debt proves my claim.

[Lite Beer]

An inflammatory post and the reply to it deleted.

[udonguy]

i think its all down the toilet

[Bpuumike]

That can they keep kicking down the road is getting very full of sand.

Buy gold, buy silver

[fletchsmile]

The article in the link started off OK, and makes some sense around MF Global, futures exchanges etc.

Then she seemed to just flip and launch into the a rant on Europe, as reproduced above. Now Europe has problems as we all know, but I've no idea where she's pulling figures like $100 trio for a bail-out from. US is $15 trio, so I'm not sure where she's getting nearly 7 times the US from for Europe. Most individual Euro country public debt figures are $1trio or less. A few of the bigger ones like German and Italy are more like $2trio, but Portugal, Greece, Ireland combined are less than $1 trio. 20-odd countries? Sorry her numbers don't stack up. Global public debt totals $40+ trio, of which the US has $15mio. Her $25 trio is nearer the mark.

For the $250 trio on derivatives exposures mentioned above that is most likely a gross exposure. It overlooks netting agreements eg ISDAs, collateral, and so on for institutions.

That's like asking an individual to pay all their household debts, mortgage, credit card, bank loans etc, but telling them they can't use their own money, bank accounts or assets to do so.

The flip side of that $250 trio gross liabilities is $250 trio gross assets, many of which will be with the same institutions. There will be some mark to market differences where valuations differ based on models, systems, differing yield curve interpolations, extrapolations, and various other parameters used, deltas, gammas, vols etc, so it may not net to zero while unrealised, but that's a million (or should I say trillion) miles away from the numbers above.

[Naam]

i was surprised that Ms Barnhardt did not include and blame Islam in her rant which -including Qr'an burning- is one of her favourite pastimes. now, as her cattle future trading business gone, she might concentrate on her crusade again

[nong38]

Europe certainly has problems, even J Delors said that it was a political decision to get the Euro under way and it just a matter of time before the countries who did not fit the rules brought about disaster. However, it is a just afew countries that are having problems and not the major players (A Northen Euro would be fine)the Euro cannot be allowed to fail it would be disasterous for the global economy. The Europeon market is a huge market. All governments run a deficet, it how its managed. The financial world will find a solution. eventually or the whole world financial system will colapse and that would a disiater for everyone, the rich and good are not going to let that happen because they wont be rich anymore.

Is that A B woman the one who makes tea in chocolate teapot?

Edited December 6, 2011 by nong38

[kellbell]

I see that the credit rating agency Standard and Poors has now given notice that 15 countries that include Germany, France, the Netherlands, Austria, Finland and Luxembourg that they are considering downgrading their credit ratings. The end of the Euro is coming and people are saying it is going to be dead and buried by Xmas. I know that if I had any Euro holdings I would be swapping them pronto.

Even one of the original planners of the Euro Jaques Delours has finally admitted it was doomed from the offset.

[Naam]

Is that A B woman the one who makes tea in chocolate teapot?

this is lovely Ann:

http://wdednh.wordpress.com/2011/04/05/ann-barnhardt-bookmarks-the-koran-with-bacon-then-burns-it-via-yourdaddys-politics/

[Naam]

The end of the Euro is coming and people are saying it is going to be dead and buried by Xmas.

what year are people saying?

[nong38]

Is that A B woman the one who makes tea in chocolate teapot?

this is lovely Ann:

http://wdednh.wordpr...addys-politics/

She has that certain look in her eye that tells me she is 2 sandwiches short of a picnic. the chocolate teapot fits perfectly :jap:

[Naam]

she is 2 sandwiches short of a picnic

[lannarebirth]

Is that A B woman the one who makes tea in chocolate teapot?

this is lovely Ann:

http://wdednh.wordpr...addys-politics/

I thought you were joking in post #11. Wow !

Anyhow, an interesting philosophical conversation on the Euro mess here:

http://www.ritholtz.com/blog/2011/12/the-euro-debate-gets-philosophical/

[ajarnpot]

The end have cometh.... oh dear Europes astounding debt, as large as the US debt?

Lets just hope the german taxpayers pick up the Bill for all concerned.

They have blotted their pad for many years to come after all

[Naam]

The end have cometh.... oh dear Europes astounding debt, as large as the US debt?

Lets just hope the german taxpayers pick up the Bill for all concerned.

They have blotted their pad for many years to come after all

[metisdead]

Some insulting posts have been removed and the responses as well.

[lannarebirth]

The end have cometh.... oh dear Europes astounding debt, as large as the US debt?

Lets just hope the german taxpayers pick up the Bill for all concerned.

They have blotted their pad for many years to come after all

Very amusing. You've been saving that one for just the right occasion haven't you?

[Naam]

Very amusing. You've been saving that one for just the right occasion haven't you?

actually i posted it some time ago but it came in quite handy today in different threads

[ajarnpot]

dam_n it Naam, you have been sitting on the master plan all this time -lol-

mayhaps the greek bird could be enjoying it all on a sun lounger

[midas]

'Goldman Sachs dictatorship - Hitler's dream'

Edited December 8, 2011 by midas

[ajarnpot]

Just watching this

http://www.bbc.co.uk/news/world-europe-16093316

looks like the french want to stick to what they know and do best,

seems to be searching for something on floor whilst the germany help push from behind

[Orac]

Just watching this

http://www.bbc.co.uk/news/world-europe-16093316

looks like the french want to stick to what they know and do best,

seems to be searching for something on floor whilst the germany help push from behind

Looks like Sarkozy has had far too much coffee - he is jittering around all over the place.

[Naam]

"I will be very surprised if we make it until Christmas"

we made it. now waiting patiently for Christmas 2012.

[Pib]

"I will be very surprised if we make it until Christmas"

we made it. now waiting patiently for Christmas 2012.

...for Christmas 2012...ohh crapp!!!!....wait, wait, the world is suppose to end on 21 Dec 12 so we shouldn't worry too much about this possible financial collaspe....or gifts for Christmas 2012.

[thaimate]

We not only made it ,but the pound is up a little against the baht.