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EU Pulls Out Nuclear Option: Proposed 500 Billion Euro Bail Out Package Is Largest In History
From Le Monde:
Zone euro: l'Allemagne propose un plan d'aide de 500 milliards d'euros
AFP | 09.05.10 | 21h58
L'Allemagne a proposé dimanche soir la mise sur pied d'un vaste plan d'aide financier pouvant être utilisé pour les pays de la zone euro, d'un montant total de 500 milliards d'euros et impliquant le FMI, a indiqué à l'AFP une source diplomatique européenne. "L'Allemagne a mis sur la table une proposition totale de 500 milliards d'euros", a-t-elle indiqué. Elle comprendrait les 60 milliards d'euros de prêts octroyés par la Commission européenne, dont il était question ces derniers jours, ainsi que 440 milliards qu'apporteraient si nécessaire les pays de la zone euro et le Fonds monétaire international. Cette dernière enveloppe serait constituée "de prêts bilatéraux, de garanties pour des emprunts et de lignes de crédit du FMI", selon la même source. Il s'agirait par son ampleur, s'il fait l'objet d'un accord, d'un plan d'aide sans précédent dans l'histoire.
Translated:
Germany
proposed on Sunday evening the establishment of a comprehensive plan of
financial aid can be used for countries in the euro area, totaling 500
billion euros and involves the IMF, told AFP European diplomatic source. "Germany has put on the table a proposal of 500 billion euros," she said. It
would include 60 billion euros in loans from the European Commission,
he was in the last day, and 440 billion would accrue if necessary, the
euro zone countries and the International Monetary Fund. This envelope would be established "bilateral loans, collateral for loans and lines of credit from the IMF," the source said. It would be in scale, if the subject of an agreement, an assistance plan is unprecedented in history.
And once this money is exhausted which it will be, Europe will default as the playbook is TARP then immediate monetization, however without a reserve currency backstop. The EURUSD is spiking by 3 handles right now, however once traders realize that the ECB will commence printing money in earnest it will go straight down to parity.
For those who want to read the best perspective on the nuclear option, here is Evans-Pritchard's take on why this nuclear bomb will be a dud:
The EU is invoking the "exceptional circumstances" clause of Article
122 of the Lisbon Treaty, arguing that the euro is subject to an "organized
worldwide attack". This is a legal minefield. A group of professors has
already filed a case at Germany's Constitutional Court, claiming that the
Greek bail-out is illegal and that the EMU is degenerating into a zone of
monetary disorder.The judges have denied an immediate injunction on aid to Greece, saying that
it would to be too "dangerous" to take such a step on limited
facts, but it has not yet decided whether to hear the case. The battle has
escalated in any case. The new EU rescue mechanism is to be permanent and no
longer just bilateral help, if Mr Sarkozy is right. The professors have been
given an open goal. One almost suspects that the Kanzleramt in Berlin is so
weary of this dispute that it has given up worrying about lawsuits. If the
judges block an EU debt union, be it on their heads.Nor is this rescue fund any more than chemotherapy for the cancer eating away
at the foundations of monetary union. It is not a cure. The rot set it when
the South joined EMU before it was ready to cope with ultra-low interest
rates or match German wage-bargaining. The ECB made matters worse by gunning
M3 at an 11pc rate during the bubble. Club Med lurched from credit boom to
bust. It is now trapped in debt deflation at an over-valued exchange rate,
like Argentina with its dollar peg in 2001 until air force helicopters
rescued President De La Rua from the roof of the Rosada.The answer to this -- if the objective is to save EMU -- is for Germany to
boost its growth and tolerate higher `relative' inflation. This would allow
the South to close the gap without tipping into a 1930s Fisherite death
spiral. Yet Europe will have none of it. The weekend deal demands yet more
belt-tightening from the South. Portugal is to shelve its public works
projects. Spain has pledged further cuts. As for Germany, it is preparing
fiscal tightening to comply with the new balanced budget amendment in its
Grundgesetz.While each component makes sense in its own narrow terms, the EU policy as a
whole is madness for a currency union. Stephen Lewis from Monument
Securities says Europe's leaders have forgotten the lesson of the "Gold
Bloc" in the second phase of the Great Depression, when a reactionary
and over-proud Continent ground itself into slump by clinging to
deflationary totemism long after the circumstances had rendered this policy
suicidal. We all know how it ended.
h/t Nico
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So how do you play this and when. I have been short and taking it in the shorts for a while.
GLD options and shorting the dog snot out of the SPY on bounces up with tight stops.
Thanks for explaining your avatar. Kinda abstract representation, but I see it now.
You liked the movie, yeah? V for Vendetta.
Have you seen his website?:
http://johngaltfla.com/
WW,
I was being very nasty. Look at the v and the o and pair it with the quote above, please.
Meanwhile I loved V for Vendetta.
If you liked V you might like this - I think Muse hits quite closely in times like these...
http://www.youtube.com/watch?v=ZpdMbdqnGKo
looks like a glimpse of JohnGaltFla's avatar at 41 sec in...
LOL! I should pay more attention.
I'm with everyone else on your avatar.
One just cannot help it Wings my man
Cheers and thanks for the link to john galt. Wow, much respect.
Well what else can you do when people can't pay their bills?
1. Let them default, with cascading systemic risk.
2. Extend their credit.
3. Give them money with a few strings.
4. Fill in the holes of bad debt with new money.
5. Some combination of 2-5.
6. Buy precious metals.
choices of what to do about a debt bubble have been known and explored since biblical times....I say whatever Bernanke, IMF says we should do...that is exactly what we should not do. Declare global jubilee and be done with it...
You didn't mention jubilee. Total system reset for creditors and borrowers.
I watched a programme about why men watch pornography.
the statistics showed that the working class were the ones least watching it and the more the salary increased the more the pornography watched.
The working classes work so the banksters can wank
And that my dear friends is why I have a both a Degree in Accounting & a Degree in Finance. WANK WANK!
Those stats were heavily skewed by the thousands of $100k + salaries at the SEC. Take government employees out of those stats and I bet you won't find so many high salaried porn watchers
okay, just plain funny....thanks
JW n FL
I for one am surprised you managed to crack the basic arithmetic test on here. I think they should use some kind of combined literacy / structured thinking-type quiz instead.
ok.. so what exactly do you not like about what I typed... and please, dont be an anti-abortion personality who thinks God is mad at all of us and we therefore need to work on our prayer time.
What exact point would you like to discuss? or is that not the purpose of you being here?
Good God man, pour yourself a drink and pick up a hooker. geez with the hyperactivity already. Calm yourself.
Hiiiiiiiiiiiiimalooooooooossssssssser.
has nothing to do with any god
a lot to do with a low level mentality that shams itself thinking ..
gutter language of the type you display , . either is a sign of trailer trash, or the misgivings of an anal zit kid , trying to get attention.
and is not adverse to lowering himself to the level of mouth merkin
ooooo dumpster dont be such a downer... its Sunday, what would Jesus do?
That's funny, Dumpster. Thanks for the chuckle. The odd part is that ole JW didn't even get the bad grammar and lousy spelling as the point of the post that joggings made. Oblivion generally has serene state of mind as a side effect -- but not in this case obviously.
I beg to differ, fucking differ to be precise, gutter language has its place in conversation for emphasis.
The Seven Words - George Carlin
http://www.youtube.com/watch?v=3_Nrp7cj_tM
Hey Crabcake! I named the Polo shirt after you....
www.zazzle.com/Howard_Beale
Gold rebounding now, silver will be up big tomorrow
As soon as the smart people wake up and realize how ignorant this proposal is, and that it is impossible to fund, reality will set in. No wonder the German Finance guy went to the hospital, he probably had a damn heart attack when they told him the plan.
Equity futures pump is already in gear tonight via the FED and the bankers. It will be wiped out by mornings IMO. Riots should resume in Europe and now in more than just Greece.
I am wondering when the take delivery band wagon takes off
That should create an inverse waterfall effect on PM pricing...
Where is Fab?
Writing a book describing how great he is! ......used by the banksters and hung out alone. Before this is all over poor Fab will be blamed for H1N1, the Gulf of Mexico oil mess, AIDS and assorted other calamities. Frame the Fab!
To know the future... just look at Japan to see the world 10 years in the future
Japan was able to use the demand from the US which was not tapped out... now the system is tapped out... unless you can find another planet with a few billion people on it... it's over.
The global credit system peaked in 2007, it's game over.
if 3% growth is top rung... we are screwed, yes... and how can we reset the entire global economic trade balance with energy costs at 300%... ok fuck it.. 200% of what they are plugged in at now?
there is no spoon... there is what it takes to refine said spoon, into energy and transport it though.
Could you explain the "spoon" part?
On the off chance you weren't being sarcastic: http://www.youtube.com/watch?v=dzm8kTIj_0M
If you haven't seen this, you really should (don't bother with the sequels, though). http://www.imdb.com/title/tt0133093/
"What is the Matrix? Control. The Matrix is a computer-generated dream world built to keep us under control in order to change a human being into this."[holds up a Duracell battery]
Thanks, CD. I'm a big Matrix fan. Seen 'em all. I just didn't make the connection in the comment. Had to go back and make the connection with "Slide" as well.
I'm glad you replied.
in case anyone cares.... this afternoon Faber sent out a special email piece to his peeps that buying right now would be a mistake. Its probable (in his estimation) we see a 20-30% correction. Fuck yeah bitches!
Dumb Ignorant Mental Midget Sheople=DIMMS Follow the goons yellow brick road to OZ and your certain to self implode financially!! Free lunch stands burning down internationally; all over the world! Sheople can't get to their food stamps; free lunch stands; benefits; entitlements!!! lil scamBO will need put 8k tax incentive for a refrigerator box handed out to the new American enclave of families living under freeway over passes before years end!! !! Sell into the gerbils/4th reich propaganda in the am and trade in your FRN's for good stuff while you can!! We'll be goose stepping to Wiemar monopoly/neoCONoplian funny money soon!!
Settle down Beavis.
http://www.youtube.com/watch?v=2yW_sIKBfIk
I am cornholio!
The 500B euro is conveniently close to the 500B allotment for the IMF and within spitting distance of the upcoming IMF meeting in Switzerland (11th) to discuss alternative reserve assets.
http://www.imf.org/external/np/sec/pr/2010/pr10171.htm
"In the wake of the global crisis, this conference will provide an opportunity to exchange ideas on a number of related topics, including sources of instability in the international monetary system, improving the supply of reserve assets, dealing with volatile capital flows, and possible alternatives to countries’ accumulation of reserves as self-insurance against future crises."
The only way I can read this.. is a push for SDR's backed by the general fund, thusly the dollar suffering... The BRIC's are getting to big for thier britches... the swap window would keep us in the drivers seat going forward for a good lil while... but to re-enforce the IMF... to allow for the BRIC's to get away from the dollar? how is that good for the Treasury? Status Quo.. no hopes and dreams of a COD lifestyle or austerity... just how things are now, and what they would want to keep things the way they are... for the Treasury to under cut themselves? doesnt pencil out for me for some reason... you got a view that helps me over that hump?
jw.. much better . theirs hope lol
dumpster... man when I am stirring the pot.. shit does get flung about, a lil... but since when do I shit on thou? ok then... when I am provoking thought for what I read as lessor than (and I am not always right, some times I catch a partial of someones)... why would you even want to be involved? with that?
jw. you can make the same point ..with less flagrant fouls
when reading the post its nice to get s continuity of ideas.
theirs language and then theirs language
some the the graphic part is reserved for you back room table .. with your teen age daughters involoved .
and all the guys from the tenth grade just back from a scrum football event and 100 bottles of beer.
it is a public forumn ,, many may take offense to the choice words selected .. this can all be said proving your point with grown up talk...
and still prove your a tough guy
provoking a certain type of personality to dig for themselves takes a less than polite approach...
I am not interested in being right, as much as I am truely interested in people knowing for themselves... the logical leaps I take when considering the type of poster I prod... is the determining factor with regard to approach... fire them up enough and off they will go, searching... learning, for themselves and hopefully spreading the word. Like I said.. give a man a fish, or teach a man to fish?
Be well and heres to hoping you have a great night, JW
We know now where burnokio got the fast cash for EU bailout! 20 min trillion dollar US markets liquid cash atm; dip Thursday!! The balance will be used to hammer paper ponzi gold crimex futures! Desperate act of last leg of paper ponzi finance before it hersey squirts out jackass holes world wide!! Jim Sinclair says the paper ponzi crimex overwhelmed by 5 to 1, as the paper ponzi finance cabal try to smash hard currency threat to vermin viper squidding yellow brick roading paper ponzi finance!! OZ the fraud!! Curtains been pulled back!!
I guess Sarkozy won't get "stuffed". Instead, a bunch of greedy speculators are going to be scrambling like hell to cover their short positions. There really was no choice. They had to send a strong message to speculators that they will do whatever it takes to save the EMU and avoid debt deflation. Period.
I dont see printing out of thin air, not to mention they cannot play nice with each other boosting investor confidence... sorry Leo.. I am short.
Are you sure? I told you, speculators are no match for the Fed & ECB. They can have them for breakfast.
I think we will weather the EU's offerings well enough... too profit that is. How to short thee, let me count the ways? sorry Leo, its Sunday evening and I am in a mood.. its going to be a long night for me... but should be profitable!
speculators......kick the can down the road. It's coming to a theater near you, Leo. Just a matter of time. 2 weeks? 2 months? 2 years? You must know when it is, otherwise you wouldn't play long. Surely you know this play by the CB's won't last...the piper MUST be paid. No way out.
Keep your eye on the ball. The EU's object here is to thin the herd of EUR shorts. Statists believe that only two-sided markets go down. One-sided markets can only go up. If you take out all the shorts, there is no downside. Of course reality is, if you take out all the shorts, there are no bids.
I guess there is only one organization worse then the Federal Reserve to control a global currency......the EU
sinclair
A nuclear solution to Europe's debt problems is simply another way of saying "Quantitative Easing to Infinity."
All national debt will be bailed out. All states of the USA will be bailed out.
Paper currencies are headed to dust.
Regardless of the first knee jerk market reaction, gold is going to $1650 and beyond due to nuclear suggestions of adding more debt to entities failing because of debt. This is the EU Helicopter Drop coming up.
Credit default swaps are herein called the "Wolfpack." About that they are totally correct.
Now that they have challenged the "Wolfpack," whatever additional funds might be required will have to be provided or the "Wolfpack" will slaughter the EU.
"Quantitative Easing to Infinity"
This is exactly why I remain long risk assets. They will do whatever it takes to shore up the global financial system and avoid debt deflation.
sure then the big bust , keeps the cookies flowing to the 10 year olds long enough as they get in bed
Leo,
Does it not concern you that a year ago Bernanke and Geithner were patting themselves on the back for "saving the world" (as Bernanke said in a Colorado speech), yet with all of the actions of such people the bank crisis has now become a sovereign crisis? Surely you can see that the buck has been passed to the last possible stop, and that what might have been a manageable problem is now so big that it will take down the entire world?
I appreciate that these clowns have a one track mind and will beat their heads against the wall incessantly hoping that more debt is somehow the solution for too much debt, but do you not see that it has only gotten worse and will only get worse if they keep on this path?
recognizing my lack of financial acumen, i think we are all better of doing Nothing
why cant we look at it like the Greeks did? an oppurtunity to short themsleves back into profitability? if they lock everyone out they will have a short monopoly, thusly all the profits to go with the cooked up self destruction of the Euro.. God Bless Germany for doing all the heavy lifting on this one..
Nuclear option? Looks more like a cheap bunker buster option. The Nuclear option would be Gold at 10,000.
Exactly.
See Open Letter to EMU Heads of State, where FOFOA lays out the real nuclear option, and why we haven't seen it yet.
Since todays open, the charts for Gold and USDX are in lockstep. Times have changed.
The Eu Bond markets will surely like this plan..wooh. You know those Bonds you hold they are about to become worthless.
It just hit me - these bankers are geniuses!
How do you indebt EVERY country around the world, as one by one takes too long?
Indebt HEALTHY countries by involving them in the bailouts of the leper nations! Freaking genius.
Soon every nation will be in debt to their eyeballs, whether they were healthy before or not.
The noose tightens.
Next step, IMF will forgive all debt if only the nations accept their new currency...which THEY control.
END GAME.
Good epiphany, but still a few decades in the making.
2X post.
Let it breathe.
There's one poster here having multiple orgasms over the upcoming US equity rally, but the longest 14 hours still remain. While the rally is planned and hoped for by Ben, JC (the European one) et al, the celebration may be premature. As this new chewing gum and cardboard bailout package is given further consideration by the markets, the final reaction is anything but certain. The original money printing bailouts were accepted by a world anxious for a new god; two years down the road the congregation of the faithful has shrunk and apostasy is more common. The sugar high wears off a lot more quickly.
By open NY it is possible that the world might have had an ugly realization that things are too broken to be fixed, in which case we get total mayhem. Odds still favor a snapback rally on the hope Jesus and Allah and everybody else's prophet really did ascend into that country club in the sky, but players would be wise not to spend their "winnings" just yet. Gods are capricious.
Let it breathe.
It HAS been agreed!
More talk no action, the world biggest pump and dump. So were back to the Sunday night European spin machine. Guess that Greek bailout last week did not work, so lets try this. This is insane pile on more debt to countries drowing in debt, that ought to do the trick.
We have two countries that are messed with elections, a euro that is on mania, depression swings, and people want to buy shares? or that is what the futures would have you believe.
only mad computers are in the market right now methinks
I like that, the Euro is manic-depressive...that sums it up...I have same feeling about market as I do about drunks and mentally ill...they are erratic and best to avoid unless you very personally know them and know exactly how they behave in their altered states..
What ETF can I use to short Euros?
EUO is the ProShares UltraShort ticker, I believe.
Google "etf to short euros". Plenty to choose from.
Good luck, don't get caught in the Vampire Squid's tentacle squeeze.
Squids are voracious feeders.
I think you're better off actually shorting a non-leveraged, long ETF. There are more ways to lose with a short and/or levered ETF than an unlevered long. It has nothing to do with the underlyng it has to do with the math involved in constructing the thing.
the press briefing is now live
ZH provided the link in a post below
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP2k8sq2WiRU&pos=1
The cages are being rattled in the main stream... the algos are busting to get loose... we may have a real event tomorrow... this week is going to be history made before our very own eyes...
on Sun, 05/09/2010 - 19:31
#340253
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP2k8sq2WiRU&pos=1
The cages are being rattled in the main stream... the algos are busting to get loose... we may have a real event tomorrow... this week is going to be history made before our very own eyes...
As pontificated about... Junk the truth some more, junk the facts junk reality... your reality.. junk it, to infinity and beyond!!!
NYSE Invokes Rule 48 For This Morning's Opening, Anticipates Unprecedented Volatility
http://www.zerohedge.com/article/nyse-invokes-rule-48-mornings-opening-anticipates-unprecedented-volatility
all good.
20:30 05/09 SPAIN FINMIN: E220BN OF STABILISATION CASH COMES FROM IMF.
20:33 05/09 EU STABILIZATION FUND IS E60BLN FROM EU,E220BLN EMU,E220BN IMF
so the yanks are once again bailing out europe.
I'm listening to the live feed of the press conference, and it said that the IMF is contributing half of what the Eurozone is. Euro contributing 440bn, so IMF contributing 220bn... quite a bit more than the 40bn IMF contribution we were expecting. The Euro will never be allowed to fail as long as king dollar can carry it.
Short memory though, they just approved the taxpayer rip-off!!!
G DAMMIT!!
The banksters have left the Greeks out of the negotiation. They want no part of the IMF, how many Molotof cocktails will it take? How many protests? How many dead? We shall find out.
This is modern day Slavery! its all it is. Instead of boarding a ship you simply stay and accept austerity and pay your never ending debt.
The fellow at the press conference doen't sound too convincing either.. Eu comedy theater.
and he responds the 440 billion will be via an SPV (Lloyd are you in the audience? everybody please stand-up and give Lloyd a round of applause)
You can not extinguish a Greece fire with money.
EU Crafts $928 Billion Show of Force to Halt Crisis, Buoy Euro
New Bloomberg headline-not kidding!!!!
OMG!!!
was just going to post that... 720b euros...
I don’t think they can hold it, though; the long-term message is they can’t pay their bills.
There it is. 100% correct. Great observation.
this is way more entertaining than March 2008 and Bear Stearns
And it's hundred of times larger in total destructive capabilities.
Well folks, I gotta say this all is quite simple.
Now that the whole world has been fooled into looking "somewhere else", with a perfect unnerving misdirection setup,
the markets have been plunge tested for stability / manageability last week,
the US and BO have proven they are on the side of right by investigating bad guys with bucks and catching guys with bombs to keep everyone safe here at home,
the military/industrial complex has plenty of spare capacity for their next big assignment and are begging for oil security
and hard assets are the only real wealth since the global inflationary paper and credit backed Ponzi scheme of the last century has run it's course
and there are plenty of unemployed ready to be put to work,
and that the West is willing to do whatever is necessary to keep everyone from certain doom -....
well, IT'S TIME !!
we just need a bigger crisis to keep us all occupied away from our current hand ringing and doubts.....
Iran goes boom next week.
Global Macroeconomics 101 - time for a war - RESET!
Now they just said the IMF portion could potentially be up to 250bn, as they committed to half of what the EU contributes, and 440bn+60bn=500bn. So now the whole monstrosity is up to 750bn apparently.
unfuckingbelievable 250bn euro IMF promise.
in USD that's almost a trillion dollar bazooka with almost US$600m in the form of SPVs
US futures are soaring but I can't help but think of good ol' Daedalus - I have a hunch this is going to south within 48 hours
bennie came to the rescue as expected.. fat finger pounding the EUR, what a party!!
Step one: Put a half trillion Euros in a pile.
Step two: Make up rules about who can get the money.
Step three: Scratch your head in wonder as everybody suddenly meets those new rules and wants some of the money.
(Do you think they realize that EU members with money trouble now have 500,000,000,000 reasons to let their troubles grow? At least -- until that pile of money is gone...)
Exactly what the Socialist Keynesians want.
Print Baby Print!
Could that be a new political party:
Keynesian Socialist EU Workers Party.
No more Nationalists, damn war mongers!
Euros say "Happy Mother's Day". Now go make some more babies; somebody is going to have to pay for all this.
in exile, for undetermined timeframe†
........though have a sweet outdoor jacuzzi massaging jets.
hope the world holds on this week.
got my lawrence of arabia download for entertainment and civility.
my d a u g h t e r is clueing me into fight club. didn't know that about her. says, i need to see the film about 10 times to get it.
let me tell you something, this generation ain't interested in having any babies. nor is her european boyfriend.
ohhhh, got to go to my sacred david bonderman burial grounds.
Oh nooooo!!!
Another Moonshoot Monday!!
Bloomberg is reporting $928 billion in bailout funds to stave of the wolfpack? Wouldn't it cheaper to just hire XE to execute the swap players. I figure they'd do it for $5-6 billion
We're trying to print fiatscos here, please refrain from raining on the QE II party.
There is no plan. HAHAHHAHA. These assholes have nothing. They don't have a process. They have settled on no numbers. They don't even really know how this going to work. It's Paulson "Let's just pick a really big number and go with it" horseshit.
Bluff.
BOJ announces USD swap facility..BBG
*BOJ SAYS TO ENGAGE IN U.S. DOLLAR SWAP WITH OTHER CENTRAL BANKS
BooYaaa!
We're finally commencing of connubial currency swap intercourse.
Maybe after 10 years someone's gonna get lucky.
Everyone bring your party hats, don't want miss out on the Euro/USD orgy.
bennie jumps on the helicopter... if ESM takes out 1135 watch for a wave of short squeeze.. goldman in wonderland :))
Steve Keen speaking to Al jazeera - he is blaming the 3% fiscal deficit rule for the problems within the Euro - stating that this SPV is way too small !
Life imitating art imitating life:
"The time for action is past - now is the time for politics"
Again, why the WORLD is screwed: http://www.siliconvalleywatcher.com/mt/archives/2008/10/the_size_of_der.php
Nothing can fix this. Why people think things can go back to so called nornal - just isn't going to happen. No more money, resources are disppearing, the world is going back to the days before oil, etc. Can't wait.
Finally, we hit the quadrillion dollar mark. Of course that was back in 2008 so now we must be up to 2 quadrillion by now.
Time to paartaay! BoooYaaa!
Hopefully we'll see a new Zimbabwe Quadrillion Dollar bill sometime in the future.
Now Ben joins the party...
FED ANNOUNCES TEMPORARY INTERNATIONAL DOLLAR SWAP FACILITIES
21:15 05/09 ECB, BOC, BOE, SNB, FED REESTABLISH DLR SWAP FACILITIES
21:15 05/09 ECB: TO DO DLR LIQUIDITY OPS AT TERMS OF 7-, 84 DAYS
21:15 05/09 ECB TO REACTIVATE TEMPORARY FX LINES W/FED STARTING MAY 11
21:15 05/09 ECB SAYS 6-MO LTRO RATE FIXED AT AVG MIN. MRO BID RATE
21:15 05/09 ECB TO HOLD FIXED RATE FULL ALLOT.6-MO LTROS MAY 12
21:15 05/09 ECB TO HOLD FIXED RATE FULL ALLOT.3-MO LTROS MAY 26,JUN 30
21:15 05/09 ECB NOTES EMU GOVTS PLEDGES TO MEET FISCAL TARGETS
21:15 05/09 ECB: ACTION MEANT TO RESTORE MONPOL TRANSMISSION MECHANISM
21:15 05/09 ECB: AIM TO ADDRESS MALFUNCTIONING OF DEBT SECURITIES MKTS
21:15 05/09 ECB SAYS EMU DEBT SECURITY MARKETS ARE 'DYSFUNCTIONAL'
21:15 05/09 ECB SAYS ACTION IS TO ENSURE DEPTH, LIQUIDITY IN DEBT MKTS
21:15 05/09 ECB: GOV.COUNCIL TO DECIDE SCOPE OF DEBT MKT INTERVENTION
21:15 05/09 ECB MONETARY POLICY STANCE WILL NOT AFFECTED BY ACTION
21:15 05/09 ECB SAYS WILL INTERVENE IN EMU PUBLIC,PRIVATE DEBT SECURITIES
And here come the swap lines:
Press ReleaseRelease Date: May 9, 2010
For release at 9:15 p.m. EDTIn response to the re-emergence of strains in U.S. dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the re-establishment of temporary U.S. dollar liquidity swap facilities. These facilities are designed to help improve liquidity conditions in U.S. dollar funding markets and to prevent the spread of strains to other markets and financial centers. The Bank of Japan will be considering similar measures soon. Central banks will continue to work together closely as needed to address pressures in funding markets.
OK now lets go after the UK ...
www.jsmineset.com just quoted www.zerohedge.com without the proper "identifier".....many are paying attention. Timing is everything.
Those fuckin' plagiarizing communist bastards.
Sue, Tyler, Sue.
I feel all dirty now.
*troll*
Et tu, Bruté? I didn't know it was the Ides of March.
Still pissed off about last night, eh!
Victory is mine!
Watch it with waterwings. He'll take you to the deep end of the pool.
Woooo weee JW!!!! Got in tonight and read some of your posts!!
Unfortunately I have to get up early tomorrow and don't have the time to get into any lengthy discussions. All I can say is google "fetal alcohol syndrome" and let me know if I can be of any help.
by JW n FL
on Sun, 05/09/2010 - 19:31
#340253
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP2k8sq2WiRU&pos=1
The cages are being rattled in the main stream... the algos are busting to get loose... we may have a real event tomorrow... this week is going to be history made before our very own eyes...
replyflag as junk (1)
by JW n FL
on Mon, 05/10/2010 - 11:10
#341408
by JW n FL
on Sun, 05/09/2010 - 19:31
#340253
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP2k8sq2WiRU&pos=1
The cages are being rattled in the main stream... the algos are busting to get loose... we may have a real event tomorrow... this week is going to be history made before our very own eyes...
As pontificated about... Junk the truth some more, junk the facts junk reality... your reality.. junk it, to infinity and beyond!!!
NYSE Invokes Rule 48 For This Morning's Opening, Anticipates Unprecedented Volatility
http://www.zerohedge.com/article/nyse-invokes-rule-48-mornings-opening-a...
Yes, yes, yes! Grind up dead Europe and feed the US markets! Pass the Soylent Green, baby!
May 10 (Bloomberg) -- European Union Economic and Monetary Affairs Commissioner Olli Rehn said the European Central Bank has decided to intervene in the secondary market.
“The ECB has taken a decision to intervene in the secondary market of securities,” Rehn told reporters in Brussels.
...Time to get your Euro PPT groove on, the ECB is in the House...
Which means Euro to Par by Xmas...
You'll get a decent short covering rally for a day. Then we drift lower the rest of the week.
Quick, we have too much debt. We better take on more debt to fix the problem.
We'll teach you speculators a lesson.
(Printing money makes your money more valuable. So hard to wrap my head around that concept.)
yeah, teach the speculators to double down...
NYFRB on the swap lines:
http://www.ny.frb.org/research/current_issues/ci16-4.html
"Fed opens USD swap lines to ECB, BOE, SNB and BOC...."
Ok, so what assets do we get?? Greek and Portugal shit paper?? You know, I never liked Grayson but he nailed it with the Red Roof Inn speech the other day. So we now own a foreign Governmental version of a shit chain.
can someone save this simple dog a long night of googling and reading and give me simple explanation of what the heck currency swaps are and what they do and what Fed thinks they are doing, and of course, what Fed is really doing? thank you in advance...I think I have the gist but want a tiny bit more...
Robo's earlier post is worth re-reading
http://www.zerohedge.com/article/eu-pulls-out-nuclear-option-proposed-50...
Bloomberg now reports rescue package at 960 Billion for nations "under attack from speculators"
http://www.bloomberg.com/apps/news?pid=20601087&sid=ap50DW8IqhBo&pos=1
It is interesting how these Trillion $ rescues get slapped together in, for example, less time than I might spend mulling whether to spring for an extra pizza topping.
V SHAPED RECOVERY INTACT !!!!
How is this money being put out there. How is it divided and how do countries come up and apply for it. And another thing, Greece needs 140 billion, Portugal I'm not to sure and Spain (I like it how Spain's financial Minister is out their tonight thinking that they are helping when in fact they will need help ver very soon) at bare minimum 400 billion and more like a trillion and change. Thats two countries not including Portugals amount, which is well over the 500 billion in euros. Two countries out of 16 and where not even talking about the UK's currency or even the Eastern European countries who's much of their debt is on the books of the same banks in trouble now in Western Europe. This is very much TARP light, but the problem is that many of the banks and central banks in each country are lying to each other so yea they think it's okay as long as they are the first to get the money and the hell with everyone else.
This is dog eat dog wrapped in a layer of "cooperation". They are saying alot of things and wanting to do alot of things, but at the end of the day each country is looking out for it's own best interest.
The individuals giving the press conference did not sound confident at all. I do not believe they have the money, but trying to 'talk' as if they do to try and calm the markets. I give it two weeks and the market will be crying foul again.
When I was a kid, I was a life guard and one of the things we were focused on was on breaking the hold of a panicked person who in their panic had the capacity to drown both rescuer and rescuee. This situation is exactly like the panicked drowning victim drowning the life guard and himself.
Hi Mitchman,
Cognitive Dissonance was promoting the ZH Fundraiser at Zazzle this morning in his great fictional creation of what happened on Thursday. I created what you asked for--a poster of Timmy in Jail--since that is the work I have been doing to raise funds for ZH. So I spent the afternoon making it for you.
Go to the Zero Hedge Zazzle Fundraiser store and you have 2 choices of sizes...
http://www.zazzle.com/timmy_in_jail_poster-228189632579265027
http://www.zazzle.com/timmy_in_jail_poster_ii-228591750370169411
You can buy in bulk and get a discount.
Howard
www.zazzle.com/Howard_Beale
this thing is nothing but a huge clusterfuck.
DOW futures at +217
Print baby PRINT!!!!!!
How is gold down on this news? Shouldn't this be a textbook flight to safety situation?
A devalued Euro is worth more than a failed/bankrupt Euro.
I've uploaded a weekly DOW chart.
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com
http://www.imf.org/external/mmedia/view.aspx?vid=83330291001
SDR Interest Rate Calculationhttp://www.imf.org/external/np/fin/data/sdr_ir.aspx
The exchange rate for the Special Drawing Right was last updated on May 7, 2010
http://coinmill.com/SDR_calculator.html
I hope no monitors have been damaged doing the posting of this information. LOL
Since the dawn of time, governments must be 0-1000 fighting the market. Yet, they still seem to like their odds. Poor us. They make speeches and shake their fists saying they will fight the wolves, with OUR money. I wonder how much of that money will end up re-shorting the Euro at better entry points... The one thing the bureaucrats never realize is that wolves go after the sick, old, and weak. A display of force may scatter the wolves for a moment, but the energy expended just made the sick EU less able to fight off the next attack. They will get their EUR rally, but at what cost? Whenever you are willing to buy something "at any price" you grossly overpay. The buyer's remorse will set in soon....
time to go to the file cabinet and pull out the "v shaped" playbook....this son of a bitch is going straight up again.
I really hope none of you were short over the weekend...
I think that TSA employee that had his naked picture passed around was caught short.
OK lets throw another 960bn of gun powder in the fire.
Where's the rewind button?
Here in Aussie - This sudden euphoria buys me more time - I might get an excellent price for my house. Cash it in, get a cheap rural lot where there is good rain, have chickens and grow stuff, watch the massive melt-down of the outside world on ZH.
Would be nice if gold took a big dip now, time to load some more on the back of the truck.
It will take a few days for the massive short squeeze, a day or two for the momentum to buy in. Next week is up at least until thursday. Fundamentals don't drive this market, the money flow does till the money supply goes down to natural levels.