Willem Buiter: A Spanish Or Italian Default Could Happen In A Few Short Days

[interestrateripoff]

http://www.zerohedge.com/news/willem-buiter-spanish-or-italian-default-could-happen-few-short-days

Citi's Willem Buiter whose succinct analysis a few weeks ago sealed the coffin of the worthless EFSF, has just come out with another knock out punch this morning after telling Bloomberg TV what everyone else knows is true, but is terrified to say out loud: namely that, "time is running out fast." He adds: " I think we have maybe a few months -- it could be weeks, it could be days -- before there is a material risk of a fundamentally unnecessary default by a country like Spain or Italy which would be a financial catastrophe dragging the European banking system and North America with it. So they have to act now." In sum - a rehash of the Deutsche Bank pitchbook to the ECB we posted earlier, only in Mutually Assured Terms that would make even Hank Paulson blush. At this point Germany has an option: tell Europe to take a hike, or go balls to wall in bailing out 250 million European's early retirement packages. The ball is in Merkel's court, who unlike Citi, JPM, DB, and everyone else, has to worry about this fickle, and potentially pitchfork bearing, thing called "voters."

Video at the link.

Significant that an ex member of the BoE MPC saying this? Normally they get someone they can tar as a nutjob making statements like this.

[Timm]

http://www.zerohedge...-few-short-days

Video at the link.

Significant that an ex member of the BoE MPC saying this? Normally they get someone they can tar as a nutjob making statements like this.

Yeah, but just now they require you to be afraid.

Very afraid.

[Democorruptcy]

Significant that an ex member of the BoE MPC saying this? Normally they get someone they can tar as a nutjob making statements like this.

Did it make you as scared as when our ATMs were supposed to be near a shut down in 2008?

This is someone who works for a bank demanding the ECB prints money.

[frederico]

Did it make you as scared as when our ATMs were supposed to be near a shut down in 2008?

This is someone who works for a bank demanding the ECB prints money.

Awe you've spoilt the surprise now.

['Bart']

I think we have maybe a few months -- it could be weeks, it could be days

I'm feeling optimistic tonight. We've got weeks at least.

[Ash4781]

The plate spinning continues.

So long convergence market says no?

[Deckard]

I really hope the Germans keep to their line in the sand. I want to see what happens. I want to see whether we'll all die or something. It's the not knowing for me you see. Unless you do it once, you'll just never find out. And you only live once for Gawdsake. Let the games begin!

Austrian school versus English Keynesian devaluation school

Soon to become PIIGS Keynesian devaluation school, if Spain and/or Italy default, don't you think ?

[R K]

I fully expect to wake up soon wearing leather pants with braces, eating sausage and having a sudden urge to drive a Merc E220cdi with particulate filter.

You'll know it's all over when Lizzie comes on the telly just before Coronation St. to inform the nation that she's changed her name to Saxe-Coburg-Gotha by deed poll (£30 online, bargain!) and that resistance ist futile. Just in time for some nice banner waving at the Olympics.

[Deckard]

I fully expect to wake up soon wearing leather pants with braces, eating sausage and having a sudden urge to drive a Merc E220cdi with particulate filter.

You'll know it's all over when Lizzie comes on the telly just before Coronation St. to inform the nation that she's changed her name to Saxe-Coburg-Gotha by deed poll (£30 online, bargain!) and that resistance ist futile. Just in time for some nice banner waving at the Olympics.

[Police]

Apparently the English Devaluation School supports the ECB stance....

http://www.bbc.co.uk/news/business-15757476

Of course they do. They hate competition.

[aa3]

All that really happened since 2008 is all this unpayable debt, and the corresponding money in the system.. was transferred from private balance sheets to the sovereigns. Well now the sovereigns are running out of runway.

The endgame is either massive printing and devaluing the real value of the debt/money in the system. Or a mass writeoff.

The people who hold these bonds of course are refusing to see reality, because it would mean dramatic losses for them.

[@contradevian]

I'm feeling optimistic tonight. We've got weeks at least.

I'm moving into tinned food.

[winkie]

All that really happened since 2008 is all this unpayable debt, and the corresponding money in the system.. was transferred from private balance sheets to the sovereigns. Well now the sovereigns are running out of runway.

The endgame is either massive printing and devaluing the real value of the debt/money in the system. Or a mass writeoff.

The people who hold these bonds of course are refusing to see reality, because it would mean dramatic losses for them.

Brace, Brace.

[interestrateripoff]

I'm moving into tinned food.

Wow how many tins is that and what's it worth? Won't it be a bit cramped.

[swissy_fit]

Brace, Brace.

Not a comfortable joke, I'm taking a lot of flights at the moment.

Plus as an expat in Switzerland working for an exporting company my job depends on the Eurozone .

Oh well, it was nice while it lasted....

[dredwerker]

I fully expect to wake up soon wearing leather pants with braces, eating sausage and having a sudden urge to drive a Merc E220cdi with particulate filter.

You'll know it's all over when Lizzie comes on the telly just before Coronation St. to inform the nation that she's changed her name to Saxe-Coburg-Gotha by deed poll (£30 online, bargain!) and that resistance ist futile. Just in time for some nice banner waving at the Olympics.

What so you will be an Austrian pretending to be German? - Like Hitler - I call my own Godwin's Law

['Bart']

That made me think. Is the debt officially the Queen's?

Doesn't the Queen technically own all the land?

She gets the perks, so why not the bill?

Trouble is, I don't like Lizzie knows what a bill is (unless she's got a footman called Bill).