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European Rescue Facility Gets Moody's Lowest Pre-Bankruptcy Rating Of AAA As Europe Prepares For Next Round Of Bailouts
Earlier today, after a few prodding phone calls from European based sources to remind the rating agencies that their only purpose in life is to continue validating the global ponzi system, both Fitch and Moody's announced they would slap the European Financial Stability Fund (EFSF) with its lowest pre-bankruptcy rating of AAA. Of course, this kind of rude reminder that the facility exists, and ergo, that Europe is still broke can only mean one thing: the EFSF is about to be used again, perhaps as soon as tomorrow, when Ireland, whose largest banks are insolvent, will attempt to sell €1-1.5 billion of bonds (although today's most recent blow up in Irish-Bunds spreads does not bode well for that particular auction). In fact, even Goldman's traditionally cheery Erik Nielsen says "As I have discussed in recent weeks, we think there is a measurable probability that [the EFSF] be activated some time next year – along with the IMF – for Ireland and Portugal, and it could also be used if Greece needs another dose of cash sometime later on." And just to confirm that even a cursory glance beneath the covers demonstrates that Europe is and continues to be locked out of general liquidity markets, is today's ongoing 7 day Liquidity Providing tender result, which for the 5th week in a row shows that one solitary bank is using the Fed's swap line to borrow the meager amount of $60 million at the whopping rate of 1.17%.
In other news, and continuing to be completely disconnected from life, the universe, and reality, are futures which surge overnight for no reason whatsoever.
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the ponzi continues
moodys....i will never figure out why people REALLY TRULY listen to them before or ever....even now...it's a joke.
Can someone please tell me when and if QE will not have an effect anymore so the FED can call it quits? Im not complaining, My long GOOG and APPL positions are yielding some good, But im getting a little upset watching my money being wasted on FED policy, And please dont tell me " For an extended period"
OK, I won't, so how about 'for a lot longer than most pundits and erstwhile Nobel laurates can imagine'?
Because if you look at Japan and Sweden, it's gone on for a long time and it's still going on.
Unfortunately, all this just means a lower standard of living for all of us (excluding the 'elite' of course!).
You want firm information on a nebulous policy so you can maximize profits on appreciation in common stocks? You want assurance and exact performance of governmental policy? And you come here for that? You might want to rethink your investment goals.
There were two valid reasons for futures to surge.
1) Ben Bernanke
2) Brian Sack
Any questions?
For how much longer....till the POMO continues...???...till elections are over???
Until the Earth runs out of space for dollars.
Ah, so that's why we search for extraterrestrials.
It could be a great Soprano's scene... 'So, er, you're the ponzi guys eh? And um, what is you would like my family and I to er... facilitate?
It will be great sport watching this corruption cresendo! Periscope down...We be going down into the Mariannis Trench. Beautiful.
RheologyMan, So money is too viscus and therefor doesn't flow enough! (low velocity)
Erik Nielsen says "As I have discussed in recent weeks, we think there is a measurable probability that [the EFSF] be activated some time next year – along with the IMF – for Ireland and Portugal, and it could also be used if Greece needs another dose of cash sometime later on."
LOL! "next year"???? "later on"?????
Try TODAY! /sheesh/
Ok I am going to get cruelly realistic. Let's try "it already happened and we are making up the paperwork and "papering it over for public consumption."
/double sheesh/
Transaction Type: EASY_CASH_FOR_SPENDING
Operation Type: MONEY_PRINTING
Procedure: NO_QUESTIONS
Auction Type: ONE_TO_ONE_SHOW_ME_THE_MONEY
Currency: FUNNY_FIAT
Kind of sounds neutral and software-ish when using uppercase with underscores.
So what is the game here? Get everyone to the cliff at the same time without actually going over, and then....??? Or... is there actually a sincere belief that these sovereigns will grow out of their hole, but that isn't realistic, so back to the original question... what's the game?
Extend (debt) and Pretend (Economic Rebound).
V good question. Lots of enjoyable conspiracy theories to indulge in, should you feel the need.
Personally I put it all down to utter incompetence.
Great analogy...
Actually, the plan is to get everyone at the cliff's edge peeking over... and then someone on the periphery slips, causing a cascading effect with everyone one being pushed off. Sort of like what's coming for all of us...
The german people did not wanted European Bonds, so the politicians set up the fund, and they will acomplish the same, without calling them European Bonds.
The ECB needs european bonds, so it can continue inflating.
Which bank? Or is not knowing part of the problem?
It is interesting that even the perma-bulls at Goldman Sachs are now worried about Ireland and Portugal although they try to cover it up with talk of Spain doing well. The spin-machine is working almost as hard as the printing machine!
The source that I have found most reliable notayesmanseconomics blog thinks this about Ireland.
"I remain of the view that I expressed on Friday that for Ireland there would be gains from calling in the EFSF or indeed the IMF to help it out. As she has a severe austerity programme in place she is likely to find that the help would not have too high a price in this area and if she can access cheap funding it would help calm things down as in such a situation one of the biggest problems is fear itself. Indeed IMF money may be accessible at around 3%. It would to my mind help to stop a potential downward spiral and buy Ireland some much-needed space."
For once someone could get ahead of events rather than keep chasing them.http://notayesmanseconomics.wordpress.com
DOW weekly chart shows key resistance around 10,700
http://stockmarket618.wordpress.com
Deep Shah.