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Going Long Into The Weekend? ECB Calls Emergency GC Meeting Tonight, Flashbacks To Paulson And Summer Of 2008
From Goldman's Erik Nielsen. Since this contradicts the previous post about the IMF bailout specifics, we assume this is merely Goldman loading up on more Greek bonds in anticipation of selling all at par on Monday morning:
According to Bloomberg, the ECB has called an extra-ordinary GC meeting tonight to “discuss latest developments”.
I don’t have any concrete information, but in my opinion there are two possibilities:
1. A Greek package will be sorted this weekend. I’ll give this less than 5% probability. I have spoken with people in Athens this afternoon (I am all over the papers there today with my note from yesterday that they’ll have to go to the IMF) – and the message continues to be that there is a huge hurdle to climb before they’ll ask the IMF for help. Also, the key IMF people are still in Washington at this time.
2. A serious banking problem is about to emerge and a safety net has to be provided before Monday morning. This could relate to Greece – or it could be another of these cross-country unclear cases, like Alpe Hypo, where Trichet had to step in.
Stay tuned – will be back if and when we learn more
Erik F. Nielsen
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A wild ride!!
Ooh, an emergency meeting - this has to be good! I'll want to load up so I catch the gap-up on Monday morning!
Kinda Reminds us what happen to the UK's Banks (RBS /HBOS) when,
they could not make the following Monday with out intervention.
How many times are investors going to fall for this
?????
Yep. I get dreams where they try to pretend it means something but it's just bullcrap. They tried one last night. So they are definitely setting up a confusion dispersion field to try to crawl off in a hole and plot something. Either that or they are just channeling all their internally conflicted psychos who are having trouble projecting the conflicts out on everyone.
Current yahoo finance headline...
Wall Street Extends Gains as Greece Worries Wane
I Can Has Sub-Market Bailout Deal ?
I'm not a financial type, but I wonder if this has to do with the climbing price of PM's and the increasing trickle of stories showing the fraud (imho) in the gold and silver markets. Are some big banks going to have to show us some empty vaults unless they get help?
They should just hang Greece out to dry. They only qualified for EU membership by cooking their books. For once, it would be nice to have someone held accountable for their actions.
Let GS arrange for the 'creative financing' to keep them afloat... That's their specialty, right?
Anyone lining up to be a counter-party to GS should seriously have their head examined. AIG. Greece. Who are they going to take down NEXT??
Greece will be bailed out by someone,someone will end up paying,like all these rotten deals,the details only come out much later.There is no way the ECB are going to let the Euro unravel,all their talk about commitments to stability and controlling inflation mean nothing.At the end of the day they are all lying banking scum,their word means nothing, and will resort to money printing just like the Fed and the Bank of England.
For now,the Fx markets like the sound of it,EUR/USD up gangbusters.Nice short squeeze going on here.
If I were Italy, Spain, Portugal, Ireland, etc. I would kick the spending into overdrive.
Buy at the close just because we always go up on Monday. Forget about Greece. Monday is money making day for the street.
Which 5 star hotel shall we have this
emergency meeting at?
Its going to be in Antartica.
TAKE_PHYSICAL_POSSESSION_OF_YOUR_GOLD_NOW
Then what?
Arm yourself and secure your property as needed. Hopefully you are not relying on your paper gold trades for day to day cash flow, kind of like GS's equity trades for example.
I tried investing in commemorative gold coins but accidentally made a typo and wound up with a box of commemorative golf coins. They have Gene Sarazen on them. Want one?
You got a Fuzzy Zoeller? I wanna Fuzzy Zoeller.
give this goldman guy a big bonus.
he is a genius.
Gotta get long into that free mutual fund Monday cash that it is always present right? I believe you are right and that the ballgame is over for Greece and regardless of a bailout now the market will not buy it as the perception that it is a equivalent to money in a furnace and the bps will continue to rise.
The Greece story is becoming more than tedious. How many stock market points to the upside has it has been responsible for? Maybe the market's late surge this afternoon was the final installment of buy the bail-out rumour. Perhaps if this proves correct we can finally get sell the news on Monday.
"2. A serious banking problem is about to emerge and a safety net has to be provided before Monday morning. "
Well... doesn't that sentence nullify itself? In other words: We'll never know?
Whats next ? Geitner goes to congress and tells them there will be a global meltdown and martial law unless we save Greece.
Vuja de all over again...
What's Greek for bazooka?
μπαζο?κα
It may be time to think about bringing back the guillotine.
How about a steak knife, I want them to feel some pain.
Burned at the stake would satisfy me.
Every so often, a meetings gets convened that NOBODY in their right frikken' minds wants to attend and get action items from. If this is accurate, the meeting described in that note would be one of them.
Hehehe, Goldman, lol, play their clients like a fiddle!
Sure there is a banking problem. A mark to market on several hundred billion of Greek debt is going to leave a mark at least, maybe a big hole that will show. We better figure out the corrective action for that before someone notices.
When was the last time we heard of a CB "emergency meeting"? Oh, would that have been the Fed? Four days ago?
Is this just more Pavlovian conditioning so that when there is a *real* emergency meeting nobody will react? Just like the continuous succession of sudden drops that violently reverse to the upside? So that when the big one finally arrives, everyone will just sit there and watch (that's if we're not buying like idiots)?
I'll post a link to this but a few sources in the EU say that the deal is for 6% over 3 years and anything over that is 7% but the IMF charges 3.6%.
http://www.integrityfxplus.com/index.php/2010/04/09/eus-bailout-deal-a-token-proposal/
I think they are buying time too, the question is buying time for what. Is it for Greece to say the hell with it and walk away from the EU, or is it for them to run to the IMF and then say the hell with it and walk away from the EU. One big issue is that with IMF or without, one of their biggest tools (devaluation of said countries currency to support the lenders currency) is gone. And the only way that it can be brought back is to have Greece go from the Euro back to the Drachma, which wouldn't really be that bad since they would have control over their own currency.
Buck the whole shebang is a time buying exercise. By even the most conservative estimates stock market valuations have been "stimulated" twenty five to thirty percent beyond the justification of any economy that exists in the world today. The plan now is to constantly construct a new narrative (read dissembling web of obfuscation and myth) to justify the annoying lag of reality. Orwellian? We haven't seen anything yet.
DOW / SP500 daily chart gives bullish signals as of Friday 9 April. Weekly chart still trends up but continues to warn of an overextended bear market rally.
http://www.zerohedge.com/forum/latest-market-outlook-0
http://i39.tinypic.com/34y4k6t.png