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Euro Surges As Rumor That ECB Will Bail Out 1,100 European Banks Takes Hold
Euro (and the market) surging on rumors that the ECB is preparing to bail out 1,100 banks in Europe. And with that the bailout moves officially to Europe. From the dealer community:
CHATTER OF NEWS ECB LOAN FACILITY GOING AROUND
- Chatter of €600bn ECB loan facility to be announced over the weekend
- Terms mentioned are 1% for 1 year loans to cover 1,100 banks
- UNCONFIRMED - Euro is moving on this chatter
Imagine Lehman. Times 1,000. Now it gets fun.
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pure entertainment
i hear the ringling brothers theme
nice rumor to get ppl to buy eud and hold for the weekend... dont think ill have any, thanks :)
600bn euro's still on the low side.
However it would allow for another 600bn+ six months or so down the line.
i cant help but laugh. never thought i'd be saying this, but its so obvious now: "gold bitches"
It is just a matter of when, not if. The amount of power needed to hold back the water grows exponentially daily.
Well, some of us are slower than others....
It's JeanIetics.
It's funny what we consider a surge in the Euro these days...
hey they might do it, just dont want any part of it.
I reckon trichet has been soundly spanked for his failure to 'inspire confidence' yesterday.
Tought spot to be in, he knows its all held together with hopium, but wont compromise himself so far as to make noises about buying bonds. The middle ground made him seem a fool.
The ECB's problem is that it's preposterously illegal for them to directly purchase EU public debt. See Article 123 of TFEU, which is basically the no-ECB-bailouts clause. (The only possible figleaf would be a Council of Ministers decision purporting to explicitly authorise it under Article 122, effectively TFEU's yes-bailouts clause.) Bailing out a truckload of commercial banks is a less-illegal way to achieve much the same objective; the commercial banks will scoop up lots of Eurozone government debt to offer as collateral, the main purpose of bailing out the Greek state is really to save commercial banks across the Eurozone, and so on. I don't buy the idea that poor, frugal, conservative-minded Trichet can't force himself to cut loose with bailout madness. He seems to have plenty of experience of doing so already.
http://en.wikipedia.org/wiki/Opium
http://en.wikipedia.org/wiki/Illegal_drug_trade :
In the First Opium War, the United Kingdom forced China to allow British merchants to trade in opium with the general population of China. Although illegal by imperial decree, smoking opium had become common in the 1800s due to increasing importation via British merchants. Trading in opium was (as it is today in the heroin trade) extremely lucrative. As a result of the trade an estimated two million Chinese people became addicted to the drug. The British Crown (via the treaties of Nanking and Tianjin) took vast sums of money from the Chinese government in what they referred to as 'reparations' for the wars.
http://en.wikipedia.org/wiki/Alfred_W._McCoy
Professor of History at the University of Wisconsin–MadisonT
The principal thesis of McCoy's work is that organized crime in both America and Europe collaborated in a wide-ranging conspiracy to establish new centers of opium production, heroin refining and distribution in Southeast Asia. This collaboration occurred following the effective suppression of the heroin trade in America during World War II and the subsequent decision to stamp out opium growing by Turkey which had been one of the main sources of raw opium. The collaboration was greatly facilitated by the Central Intelligence Agency and by the unstable political situation created by the ongoingVietnam War.
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"Euro Surges As Rumor That ECB Will Bail Out 1,100 European Banks Takes Hold"
I heard rumors for months that Greece was getting a bailout, not a fakeout.
There is no political will to bailout in the EuroZone like there is in Amerika, thank goodness.
Europe will wait to do something when the SHTF, and not before.
When poo is hurtling through the air, encasing all its stunned citizens in fecal material, then the ECB will finally act, and say, "We just had to do something! $h!t was flying everywhere!"
The ECB here, means you and I.............
and they will say, "Holy F&ck, its Mount Poosoovius!"
In future times a rich source of fertilizer and ammonia products for explosive, becomes the world's most *smelliferous* archeology site when mummified (or may I say pooified?) carcasses are found.
An alternate history tells of infinite fiat covering the world to a depth of 25 meters, blocking out the sun and ending life.
Yeah right... Europe only acts when it's way to late.
For the moment, it's just to late so they still have a lot of time before even thinking about something like that.
Bail Out 1,100 European Banks.
Yep that really inspires confidence in the EU.
Seriously WHERE'S THE MONEY COMING FROM
the ECB, Fed swap lines, and of course, the american taxpayer
bend over
Man, R U st-pd? American taxpayer? you know nothing about the money market and you show it....Silly
Right then ...
http://www.youtube.com/watch?v=9WoQQ-mAQeE
@Windemup...yeah very mature...you act like a taker
@sheeple
Bernanke's direct line from the ECB has been ringing incessantly all morning, but he's tied up in "meetings" and won't take the call. Darn, now about that upcoming auction...
Thin air...very thin air.
++ Insert Image Of Kitty Fishsticks Head Bobbing With Headphone On Here ++
Ain't money. It's Pixeldust.
HAHAHA!!! silly rabbits. Bailouts crush currencies! ECB's printing press ain't big enough to bail out 1100 VD infested hookers.
I was trading the EURUSD last night and got creamed. I read on the wire that Japan was dumping $2T yen ($2.2B) into the Euro to help shore it up. I was watching 50-100 pip runs in 10- and 20-minute timeframes. I stank like fear all night long. I lost way more than I though possible after getting both stopped and margined out(!) several times in crazy tears north. This morning, I woke up to a nice profit that recovered (Fibonacci-like) about 65% of my losses, but, man. Nothing like a 100:1 forex account to get your adrenaline going. Fortunately, I tightened the trail to 10 pips and got out before the 150-pip tear from 1.259 to 1.275 in 20 minutes. Ugh.
Tyler,
Not gonna happen before German elections
this sunday.
And, the rumor didn't help EU equities
one bit today:
DAX: -3.3%
FTSE: -2.6%
CAC40: -4.6%
MIB -3.3% and lucky to hold it at that.
Frankly, I'm embarrassed. We are a silly species. To think that any of my fellow homo sapiens would rejoice over yet another bailout of moronic banks makes me want to go and charge Scopes with slander for what he and Clarence Darrow did to the monkeys. We never evolved. Monkeys did well to be rid of us.
If there is even the slightest bit of sanity left among the market participants, we ought to surrender about 200 handles over the next two weeks. And I'm going to go eat some bananas.
"And I'm going to go eat some bananas."
chindit13
Clearly you have evolved further than the average monkey so please help yourself to a banana split with whipped cream and a cherry on top. :>)
I agree. Puny humans "on the march." Obviously a bailout of "European Banks" would be THE GREATEST THING EVER so long as you're not a "European." How is this good for equities? Well, obviously if the New York Stock Exchange declares "buy low/sell high" against the rules then apararently it must be some "equity trader" up to no good again.
All 31-flavors of awesome in on easy to digest package - right there.
Bravo!
Actually, monkeys evolved from homo-sapiens.. Not from monkeys to homo-sapiens as it is commonly believed.
Think about it.
So actually, CD, he has evolved less than the average homo-sapien!
But DEVO says we are in De-evolution. So, we could be going backwards to monkeydom!
Huh? Monkeys evolved from Homo sapiens? Where did you read that? If I am not mistaken Monkeys appeared in the Oligocene Epoch, 36-31 million years ago, in the Cenozoic Era. And the first appearance of Hominids was ~5 million years ago and Homo sapiens appeared ~0.5 million years ago. So, how can Monkeys evolve from Homo sapiens?
And, if you want to see human apes, here you go.
http://gadgethd.blogspot.com/2008/05/human-apes.html
Holy shit, that link's a little insulting to apes, don't you think?
More like human-pumpkins!
Yes, I agree, 'tis insulting to Apes. Sorry. That's HGH for you. That's what some men with tiny Khrams do to get over their insecurties. Give them a few more years and those dudes will start lactating, and then they can become surrogate moms. It is a festivus miracle, men nursing babies without undergoing a sex change. Side business to feed oneself when the ponzi economy collapses. LMAO!
Just so you know, we are partly descendant from Neanderthals.
http://www.nytimes.com/2010/05/07/science/07neanderthal.html
That's right, your ancesters liked kinky sex too.
The thing about EU bailouts, the detailed information about those will be even more scarce than the info we have about ours. Welcome to the good old boys club.
However there is a catch, lack of information tends to create uncertainty and while those "bailouts" might be the Great (temporary) "Success" they will also increase probability of panics, bank runs and similar.
Myself, I like the smell of panic late Sunday evening, it's the smell of rationality penetrating the frontal lobes of those who would otherwise chose to live in denial.
what's the difference between a Eurotrash and a Eurobank?
One's on fire.....
"There is no gold in Aqaba!"
Aur-ance lied
Time to start a bank from scratch and hack their network to add the name on the list.
What strike me as funny is that this is being presented as if it's some brilliant, completely out-of-the-box idea.
Like some mid-level ECB bureaucrat snapped his fingers in the middle of a meeting with other mid-level ECB bureaucrats and said "I've got it - let's print-up a metric fuckton of cash with absolutely nothing to back it up and lend it out to banks at little to no interest!!! It's totally bloody brilliant!!! And completely original!!!!!"
Heck, he might have even mentioned a helicopter, just for effect.
'Metric fuckton' - good one!
Fantastic explanation of Keynesianism and it being the root cause of the Greece (and other European) situations: http://20smoney.com/2010/05/07/blame-keynesianism/
I truly don't think that Germany's parliment is going to allow this bailout money to go out from Germany as their share. They have been himin and hawing all these months and nobody knows what the outcome will be even this weekend. No, if they do allow it they will want to reduce the amount of their share.
600bn euro out of thin air to support an illusion of well being. 1% is less than inflation, leave alone an interest rates, so, everyone will be happy.
There is that little matter of Euro Gold is there not though?
Gold rises and ECB gold rises right along with it, at market rates? The gold to the moon scenario, much loved by all us ZH'ers, works for Europe. In one fell swoop...... an upward move in a commodity wipes our Europe's debt.
Unlike USA gold which
a. Might be no gold at all
b. Might be Tungold
c. Is priced at some wierd, un-understandable peg.
Hmmmm...... I'd say the Euro and Europe in general might come out smelling sweeter after all.
They do still manufacture some things and do that really really well, have a populace that is still rousable and a history that, compared to the US of A, goes far back in the mists of time.
Of course, in the wholesale, world-wide mess that is going to hit us soon, none of this will really matter anyways, but, worth noting I feel.
Posted May 1st - a week before the crash.
'11,250 / 300 is an area of significant resistance and if this level can’t be breached it should signal the end of the March 2009 bear market rally - the weekly DOW chart shows an expanding wedge indicating a significant move is probable - this remains an overbought bear market rally and the uptrend could falter at any time - the VIX index continues to give bullish warnings which is bearish for equities - long term charts of key equity indexes continue to give bearish warnings and the March 2009 lows will be breached in my opinion - USD Index bullish warnings since 2009 on the weekly and monthly chart have not changed and further USD strength and thus EURO weakness is still expected '
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com
duplicate
Frankly, I'm embarrassed. We are a silly species. To think that any of my fellow homo sapiens would rejoice over yet another bailout of moronic banks makes me want to go and charge Scopes with slander for what he and Clarence Darrow did to the monkeys. We never evolved. Monkeys did well to be rid of us.
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