Archive - Feb 18, 2015 - Story
The Catastrophic Costs Of Extend-And-Pretend Are About To Crush Europe
Submitted by Tyler Durden on 02/18/2015 08:07 -0500Extending imprudently massive loans to marginal borrowers always plants the seeds of disaster, and extending and pretending turns a potentially containable disaster into an uncontainable financial calamity. Yet this is the game plan of policymakers everywhere, from Europe to the U.S. to China--extend enormous loans to marginal borrowers and then mask the inevitable defaults with extend-and-pretend policies that vastly increase the size of the debt. By the time extend-and-pretend finally reaches its maximum limits, the resulting implosion is so large that the shock waves topple regimes, banks, currencies and entire nations.
Frontrunning: February 18
Submitted by Tyler Durden on 02/18/2015 07:34 -0500- Bank of America
- Bank of America
- Bank of England
- Bank of Japan
- BATS
- BOE
- Carlyle
- Chesapeake Energy
- China
- Citigroup
- Credit Suisse
- Creditors
- Design Development
- Devon Energy
- European Union
- Evercore
- Free Money
- Germany
- Global Warming
- Greece
- Greenlight
- Housing Starts
- Illinois
- Japan
- Legg Mason
- National Health Service
- New York Times
- Obama Administration
- Reality
- Restricted Stock
- Reuters
- SPY
- Starwood
- Starwood Hotels
- SWIFT
- Swiss Franc
- Ukraine
- United Kingdom
- W.P.Carey
- Wells Fargo
- Greece to submit loan request to euro zone, Germany resists (Reuters)
- Ukrainian forces start to quit besieged town (Reuters)
- Bank of Japan maintains policy, no surprises (FT)
- China Considering Mergers Among Its Big State Oil Companies (WSJ)
- Soros Shifts to Europe, Asia as Investors Cut U.S. Equities (BBG)
- Putin tells Kiev to let troops surrender as Ukraine ceasefire unravels (Reuters)
- Venezuela Squanders Its Oil Wealth (BBG)
- Swiss prosecutor raids HSBC office, opens criminal inquiry (Reuters)
Stocks In Holding Pattern With All Eyes On Draghi And Whether ECB Will Pull Greek Liquidity
Submitted by Tyler Durden on 02/18/2015 06:56 -0500- Bank of America
- Bank of America
- Bank of England
- BOE
- Bond
- Central Banks
- China
- Copper
- CPI
- Credit Suisse
- Creditors
- Crude
- Equity Markets
- Germany
- Greece
- headlines
- Housing Market
- Housing Starts
- Japan
- Jim Reid
- Monetary Policy
- NAHB
- Nikkei
- RANSquawk
- Reality
- recovery
- Reuters
- Testimony
- Ukraine
- Unemployment
- Volatility
There was much confusion yesterday when algos went into a buying frenzy on news that Greece would submit a request for a 6 month loan extension, believing this means Greece has caved and will agree to a bailout programme extension as well. Nothing could have been further from the truth as we explained first moments after the headline struck, and also as Reuters validated moments ago when it said that "Greece will submit a request to the euro zone on Wednesday to extend a "loan agreement" for up to six months but EU paymaster Germany says no such deal is on offer and Athens must stick to the terms of its existing international bailout." But since the political nuances of diplomacy are lost on the math Ph.Ds who program the market-moving algos, the S&P did manage to roar above 2100 on what was another headfake and then forgot to sell off on the reality.
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