This page has been archived and commenting is disabled.
EURUSD Takes Out Day's Lows After Irish Opposition Says Will Vote Against EU/IMF Bailout
Remember Europe and that insolvent country which Ron Insana conclusively determined does not matter? It's back on the scene after Reuters reports that the main Irish opposition Labor party has just announced it will vote against the IMF/EU bailout package. Just what spin Olli Rehn will have to use to calm markets after his latest vassal nation continually refuses to go quietly into that good night, remains to be seen.
From Reuters:
The euro extended declines on "Labour would vote against it because we consider it a bad
Thursday after a spokesperson from Ireland's centre-left
opposition Labour party said the party will vote against an 85
billion euro IMF/EU bailout package when it is put before
parliament for approval next week.
deal," she told Reuters. Ireland's governing Fianna Fail party
said on Thursday it would seek parliamentary approval for the
rescue funds.
»
- 9100 reads
- Printer-friendly version
- Send to friend
- advertisements -
Absolutely brilliant!!! Now that is what I call looking after the people of the country and NOT the banksters!!!
It could reasonably be argued that the dollar will be around 84-85 and the Euro around 1.25-1.26 within the next month. Which will cause a whole heck of a lot of redemptions/stop-outs/bankruptcies.
yeah right - king dollar...what a joke
FINALLY! some genuine opposition, beyond mere talk
This is just the opposition MP's move to get some backhanders from the banksters.
They'll come round... you'll see.
Unless the IRA have made it clear to them that a yes vote = treachery in their eyes. In which case the parliamentarians might find some steel for their backbones from somewhere.
While I agree (non-expert) that Ireland probably ought to default and not become slaves again, I hereby again have to:
call BULLSHIT on the IRA.
The IRA was/is nothing but a bunch of Marxist terrorists who perfected the ´two bombs´ idea, blow up one, wait 30 minutes and blow up the other, you know when the ambulances and fire crews are rescuing the victims.
That's right. Their wheels need a little more grease. Been following politicos long enough to know any perceived resistance is always for show.
a time will come soon when a weaker EUR does not a stronger USD make.
What are you talking about? This post is talking about the EUR/USD, so of course weakness in the euro makes this pair go down. If you mean the USDX, over 50% of that is against the EUR so the chances of it going down with the EUR are extremely slim. There are a smattering of other currencies in there but they mostly worthless as well.
on a 4hr chart the aud/usd looks to be trying to paint an inverse head and shoulders that could break out sometime next week and target 1.03 or so
meant to say 4hr candle but any intraday or daily chart shows the pattern that began around november 11th
Yes a joke, but at the moment the dollar is king! Once everything goes bankrupt and we go through a gut wrenching period of deflation in the US, it will be more like the king's toilet paper.
It could reasonably be argued that the dollar will be around 84-85 and the Euro around 1.25-1.26 within the next month. Which will cause a whole heck of a lot of redemptions/stop-outs/bankruptcies.
The senior currency is always going to be strong in a deflationary depression- when those margin calls start coming in. The dollar will be trainwrecked eventually, and our savings destroyed but for now its going to take a decade to unwind the positions, technology and pricing based on e buck. Anyone who thinks differently is gojng to get smeared. In case anybody was wondering, the dollar is still far off its lows of 2007-2008 during the credit mania.
Buy gold and silver with your temporarily stronger dollars. The Euro won't be around in 5 years. Or Swissies- I could go for Swissies
Does anyone have a vote count thus far? Does this pull the vote tally below the minimum required for passage?
Cooter
Ummm....ok.
Where is my ipad app to fix this?
Hey, no cutting in line. I'm still waiting for my accordian app.
Nice! Throw a bit more chaos into the sauce, BAM!
maybe the news that Ireland banks are paying bonuses may have had something to do with this?
Gold taking a dump again, damn man, just got back in.
@doji
But you're supposed to buy the dips...
Chase the dragon, and the water will turn to cherry wine.
Paper lasts forever!
I seem to be having trouble spending my Reichmarknotes, though. Anyone know where I can trade them for face value?
lol
Zimbabwe?
Tyler and colleagues,
Please feel free
to see the US BaNks CDS Evolution (5yrs) last year
http://www.rankia.com/respuestas/622925/images/28561
BAC and MS worst positioned...Wikileaked?
Banks CDS were wider yesterday as stocks were broadly higher. The market continues to make no sense but nobody cares.
I care, Tyler.
.
Running faster and faster to stay where we are, the new normal;)
thx for reply.
I could tell one thing in Spain
For example
Banks are not recognising real losses in Real Estate Loans
-So all stress test gonna be a farce+scam next 2011
-Market is completly broken, and as you have mentioned, -
1.Bearish divergences in Equities: By ARMS/TRIN- and Equity Outflows
2-We dont have new net jobs,specially in private sector, so its impossible to sustain consumption and payback loans so spain yes it is default. so Hedge Funds Could destroy Easily Spain and Europe is just minutes and that means = au revoir EURO currency.
Royal Bank of Scotland up 4.5% today, and totally unfazed by this news. The market doesn't make much economic sense, but it does make political sense....
CDS is wider but PPS is up? Looks like a last ditch attempt at a short squeeze as the banks desperately look for cash wherever they can find it at the trading desks.
Spain Portugal and ireland markets all up about 1% too. This is nuts.
I will vote for the Irish opposition Labor party here in the USSA. Write it in, bitchez!
United Socialist States of America?
Yes
Gordon Brown's statements on the euro having a high noon moment in early 2011 hasn't helped either...... ( bbc)
"I sense that in the first few months of 2011 we have a major crisis in the euro area... You've got fiscal deficits, obviously. But you've also got massive banking liabilities in the euro area, and that's not just the peripheral areas. It's the core areas of Europe where banks are really under pressure because they have lent huge amounts of money but have no guarantee they have the capital that is necessary to sustain themselves in all positions.
"But then you've also got this impediment to growth. The euro area is inflexible because you can't adjust your currency... The structural reforms that are necessary to make a single currency area work have not been completed and in some cases have not been agreed. And therefore you've got to have a nigh noon...You've got to deal with these problems in one fell swoop... They've got to do it in a way that seizes the initiative from the markets... It's got to happen in the first months of 2011."
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/12/brown_we_ha...
When you look at the horrendous concentration of repayments and bond emissions in the first months of 2011, you know why he said this.
Hahaha, Ron Insana, the same guy who decided to become a hedge fund manager about 5 minutes before the crash? Is that the guy.
Looks like the currency trade is going to be the leader to the end of the year.
A real race to the bottom.
Selling Sterling in Citi Fx...
Ron Insana, flogged by the markets, his fund shuttered, only to return to CNBC...where it was decided that this failure somehow qualified him to comment on all things financial. Bueller?
As the Euro slides, oil spot implodes, again reminding everyone that the EUR/USD is the risk indicator...you know...the currecny representing the continent that is insolvent.
RISK OFF! Woot!
EUR is overpriced 40%
Cos 6 countries are running in default
Spain
Italy
Belgium
Portugal
Greece
and Ireland
40% over priced against Chinese Remninbi.
0% against dollar
20% under priced against Australian dollar
and +1000% over priced against gold if this glass house we live in comes down
hey quintus - back in the news right?
Indeed. This is excellent news, although I would temper my initial pleasure by suggesting that this may be no more than the Labour party engaging in some gun-to-the-head bargaining with the Government to secure some benefit or other for their constituency.
Also, I am not familiar enough with the dynamics of the Irish parliament to know whether the Government will still have enough votes to get this done. I suspect the Government will still be able to scrape a majority like they did with the budget vote on Tuesday. If not, nobody will be happier than I. This 'Bailout' is nothing more than systematic rape of the Irish people for the benefit of the banks.
re: Quintus
""that this may be no more than the Labour party engaging in some gun-to-the-head bargaining with the Government to secure some benefit or other for their constituency""
yes, likely so, but Labour might now see, by looking/knowing the instantaneous and massive impact on the FOREX EURO, that .....their mere provincial, petty party politic, had the power of a World Scale Economic impact...must have knocked them right off their bar-stools into sober rethinking...like the first Somalian Pirates, demanded a mere $100k, and now KNOW that they could ask and get 10,000K...Oh the Horror, the giddy first taste of Real Power..and larger scale corruption that follows...Oh the Power!
in my simple understanding, i suspect the Irish Parliament decisions have larger implications worldwide. This means, whatever independence the Irish parliament has will be limited because of the larger worldwide collateral damage. By this logic, the can will continue to be kicked down the road until it explodes in your face (in the meantime, as you rightly pointed out, the chinese continue to buy/ship out gold. I wonder if JPM guys et al are that smart after all; they have succeded to postponing the crisis for few years but at what price?
What do they care? They'll have retired to some Caribbean island by then... they think.
Labour may have come to the simple realization that if they want majority in next January's elections, they will vote against this mess. They will win in a landslide election!
I agree ---- then renege on all previous gov't promises --- then all hell will break loose as IMF, EU, banksters etc realize their plan of enslavement isn't going to work ----- and then Greece will light up again as they see what the Irish are doing.
Portugal also watching this carefully
I really don't look forward to this but the ride has to stop at some point and the haircuts have to start. There will be many unintended consequences and not sure anybody can predict what will happen.
this is all fine and good if olli lets them have an election. i mean they are only irish. have they even asked him for permission yet?
Is it just me, or suddenly are treasuries moving lock step with stocks?
This is an important point to make as far as connecting otherwise obvious dots. The market is effectively controlled by monetizing treasury debt. Exploding yields make that much more difficult to accomplish profitably. I expect that the Fed is going to try and eat the loss, but for how long will it have that ability?
Nice news! Stand up for the Irish! My worry and attitude towards this is that "IT WON'T STICK"! How much SHIT needs to be piled on to MORE SHIT before EQUITY bitchez cave?? How more hey? I know, I'm angry. This is where I belong, ha. Just venting.
Irish Courage?
Erin go bragh.
Is this vote enough to defeat this nonsense? The vote on taxes passed 82 to 78. Anyone know?
There are 166 members of the Parliament, and the Labour party appears to have 20 of those seats. I presume there will be another 4 votes against from the Sinn Fein party, as they've made their opposition clear in the past. It seems reasonable to assume that a few other votes will be picked up from the other parties, but I don't know what majority is required for this particular vote.
Good for the Irish oposition!
And our market seems to like this idea.
Nice to FINALLY see some will to fight here. How is it that the Irish actively fought for independence against British rule for hundreds of years but then suddenly handed over their country's fate to some sniveling Eureaucrat with a collective shrug?
Come on lads! They'll come for your pint glasses next!
Go Irish...grab a Shillelagh and beat the hell out of the IMF/EU.
Out of context?...
Shillelaghs are traditionally made from blackthorn (sloe) wood (Prunus spinosa) or oak. The wood would be smeared with butter and placed up a chimney to cure.
http://en.wikipedia.org/wiki/Shillelagh_%28club%29
Wow it took out the day's low! The sky is falling!
And in other news, it looks like a $2T deficit is now baked in the federal budget -- if Congress ever gets around to passing one. Smells like economic growth to me.
Is there a schedule whereby metrics like NFP and the like are reported in an orderly manner? If so, where can i find a resource that records the timeframe? I want to get to a point where i know when data will be released so i can prepare in anticipation. Does this even make any sense?
have you tried Googling the phrase "economic data calendar"?
Try http://www.forexfactory.com/calendar.php
I hope this is a serious opposition. Off topic question, doesn't the Fed Z1 come out today? That should be a good read.
As Europe turns towards the cliff and threatens to jump, at CNBC, the network courageously and breathlessly carries forth with insightful coverage of pictures of Erin Burnett's last vacation....to....IRAN!
Comcast has to be literally crapping in its corporate pants every day that ticks by with this current crew destroying the value of their acquisition.
They can´t have an election at least until St Patricks day is over......
who cares? The opposition doesn't have the votes to block it
I would be so wonderfully proud if they voted this shit down.
Irish have the upper hand even though they are in trouble.
If they grind things to a halt, they can extort more demands as the world markets suffer.
They have nothing to lose.
Insana: He knows nothing:
http://www.youtube.com/watch?v=SWksEJQEYVU&feature=related
This is mostly just a political play on Labour's part to solidify their current good standing with the voters and hopefully increase it to try and overtake Fianna Gael in the polls (I think last count was FG on 32%, Labour on 24% and FF on record low of 14%). They know already that the vote will pass because Fianna Fáil have enough votes to get it through and they know that it's not a popular motion with the people. So they declare that they will vote against it and the people cheer them on for being great fellas.
However the real test will be what will they actually do once they presumably get into power early next year. If current poll numbers remain the same they'll be in a coalition with Fianna Gael (who probably will have more seats than Labour). We'll see then if they have the stones to overturn the EU/IMF agreement and default. I'm doubtful myself and I wouldn't get pumped up about today's announcement from Labour.
I'm an englishman but God bless the bloody Irish none the less ! rock on mates !
GOOD FOR THEM. They refuse to pay obsene taxes to bail out the Bankers. Let the Bankers fail and let Ireland rebuild from there. I think they will be better off.
Ireland will do as it is told, it always does :
2001 Ireland reject Treaty of Nice in referendum, told to vote again until Yes vote achieved, Yes vote achieved 2002 ;
2008 Ireland reject Treaty of Lisbon in referendum, told to vote again until Yes vote achieved, Yes vote achieved 2009
Excellent Point
Sodomizing a population by Vatican Clergy appears to be an effective form of social control...
Were the Irish sold american voting systems?
Unfortunately (in this case) Labour's not the main Irish opposition party. Fine Gael has more seats in parliament, and it's currently undecided as to how to vote. Given that FG is a loyal member of the EU's Christian Democrat bloc, and that it's the native political party of Peter Sutherland, I wouldn't be expecting it to rock the boat. And the same lovable independent pols who voted for the budget will be voting for this as well. To be honest even Labour's probably play-acting, confident that it can make FG do the dirty work of abstaining if necessary.
Ron Insana...
Can you really take a George Costanza lookin' MoFo seriously?