Zero Hedge
October 12, 2011
Thank god for Dexia’s implosion this morning, or else the world would be forced to pay attention to the fact that Greece is still as insolvent as ever and still without a formal Troika approval for disbursement of the critical 6th tranche that Greece needs or else. Also, were it not for Dexia someone might notice that two other banks bit the nationalization bullet in the past 24 hours as the contagion, not from Dexia, but from the fact that there is simply not enough money around: as a result Danish Max Bank and Greek Proton Bank just handed the keys to their HQs to their primary regulators, with the management teams quietly riding off into the sunset. They are the lucky ones: in a few months it won’t be nearly as easy to find “nationalization” funding and keep your depositors away from the “tar and feathers” tool shed.
Yes sadly, there always is a reason. In the meantime, the net result is that “bailout” funds are becoming depleted, credit ratings are getting even more strained, and eventually even the whole “good bank/bad bank” paradigm which has suddenly taken Europe by storm will fail once the vicious math of continental bail outs hits home, and Europe’s last attempt at kicking the can fails, as it will… In a few months.
But for now, it’s rally monkey time, the only question is what is the half life of this particular global attempt at sticking one’s head in the sand.
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