Check out these preposterous lies by Bank of France Governor Christian Noyer as quoted by Bloomberg in Noyer Sees ‘Absolutely No Reason’ to Use Bank Backstop
- “I’m extremely confident” in French banks because “we know them very well. We know their balance sheets, their risk assessments. We know they have no toxic assets.”
- There is “absolutely no reason” to activate a support system for the nation’s banks that was set up during the financial crisis in 2008.
- Markets “are over-reacting,” he said. “They need to come back to a sense of reality.”
All of those are blatantly preposterous. However, lie number 1 has to be one of the top lies of the year. "French banks have no toxic assets"?!
For starters, what about Greek bonds about to take a 50% haircut or more in default? That lie is so ridiculous no one on the planet can possibly believe it.
Greece vows to stay in the euro, never go bankrupt
In case you need more laughs this Sunday, please consider Greece vows to stay in the euro, never go bankrupt
Greek Finance Minister Evangelos Venizelos sought to reassure nervous markets and EU partners on Saturday by pledging his debt-ridden country would do whatever it takes to avoid default and stay in the euro zone.No Greek Paper Will Go Uncovered!?
During an IMF meeting in Washington that was dominated by fears that Greek debt woes could trigger a wider European crisis, threatening banks and hurting the world economy, Venizelos dismissed any talk of bankruptcy.
"Greece will always be in the euro and Greece will never go bankrupt because this would be destructive for the euro zone and for many other countries beyond the euro zone," he said in a statement after meeting his German, French and Italian and Belgian counterparts.
The European Union and IMF handed Greece a 110 billion euro bailout to save it from bankruptcy last year in exchange for austerity measures and reforms, but markets remain unconvinced a debt mountain of over 160 percent of GDP is sustainable.
"Greece is determined to honor all its obligations. No Greek paper will ever go uncovered," Venizelos told reporters.
Excuse me for pointing out two simple facts.
- Bondholders have already agreed to a 21% haircut on Greek bonds.
- More haircuts are coming.
Europe Weighs the Weightless, Comes Up with Wrong Answer
Bear in mind the German supreme court has ruled out permanent bailout mechanisms. Moreover, the odds that Finland, Austria, Slovakia and the Netherlands would approve them is close to zero.
Nonetheless, Europe Weighs Speedier Enactment of Permanent Rescue Fund to Stem Crisis
European governments are exploring speeding the start of a permanent rescue fund for their cash- strapped economies amid fresh signs they may bolster efforts to halt the worsening sovereign debt crisis.Citigroup and JP Morgan Dismiss the Lies
Senior finance officials will examine next week the cost advantages of setting up the fund, known as the European Stability Mechanism, a year earlier than its currently planned July 2013 start, according to a document prepared for the meetings and obtained by Bloomberg News.
“Patience is running out in the international community,” U.K. Chancellor of the Exchequer George Osborne told reporters yesterday.
That pressure increased after concerns that a Greek default may be inevitable helped push global stocks into their first bear market in two years. Economists at Citigroup Inc. said yesterday they now expect Greece to begin restructuring its debt as soon as December, while those at JPMorgan Chase & Co. said the euro area will start shrinking in the fourth quarter.
Lies from Europe are now so preposterous that even Citigroup can spot them.
Mike "Mish" Shedlock
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