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Greek Non-News Of The Day Comes Just In Time To Spike Futures
The biggest non-news of the morning, that Greece has formally requested aid, which of course manages to spike idiotic US stocks as per usual, was that Greece formally requested aid. Yeah, nobody saw that coming. The issue is this proves absolutely nothing, with the EURUSD moving a tad higher and with Greek bonds still in the 8% range. What the futures gunners don't care about is that the activation mechanism remains unchanged and still needs the formal approval of Germany, which as we pointed out yesterday has now seen major opposition political parties step ahead of the process, in essence blocking the entire rescue. But who cares: the dollar is slightly weaker and all the carry traders are going nuts, so buy, buy, buy.
From Market News:
The German government reaffirmed Friday that an activation of the aid program for Greece requires an IMF consolidation
program, and that Eurozone heads of state and government must approve the request.“The activation mechanism remains unchanged,” German government spokesman Christoph Steegmans said at a regular government press conference.
The Greek government requested on Friday that the aid plan offered jointly by its Eurozone partners and the IMF be formally activated.
German Finance Ministry spokesman Michael Offer said the “aid request has not reached us yet, but if it should be the case, the federal government will be ready to act immediately.”
Nevertheless, Offer then insisted that at least until the end of May, Greece does not have an acute financing need. Thus, Germany will not face any time pressure regarding its share of the aid package, he argued.
Eurozone members have said they will provide up to E30 billion in bilateral loans for Greece this year in a joint program with the IMF. Germany’s share would amount to up to E8.4 billion. German Finance Minister Wolfgang Schaeuble said on Wednesday that most experts estimated the likely IMF contribution at between E10 billion and E15 billion.
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Dow 36,000 as Greece is saved! Not! Must be time to take XRT parabolic! Oh wait they already did. Um, Scotty, beam me up! It's scary down here but I'm the only one to notice ;)
Hey give em a break, with SEC big wigs surfing porn all day (see congress report)..just think the guys at the IMF and NYF are so much better, lap dances for free, money for nothing and debt porn for all.
I have fallen thru the looking glass..dow to the moon.
PM Papandreou's announcement (obviously a nightmare job by his PR underlings) was full of bathos and cowardice, trying to shoulder off all blame onto his political opponents (c.f. "write two letters") and never one pronouncing the dreaded initials "IMF".
Tyler, You really are a pessimist. So the market rallies each and every time Greece appears to be on the verge of being considered for a vote on potential salvation. Frank Sinatra sang "World on a String" ten thousand times in his career, but people applauded each and every time. Same.
This entire on-again off-again thingy reminds me of one of those clock mechanisms that changes a rotating spindle into a rocking or ratcheting motion. In this case, it is ratcheting up the market. The point is that regardless of the direction of the spin, the ratcheting only goes in one direction, in this case up.
Great news! Greece finally admits it is defaulting and a picture of a Greek riot is on the front page of the WSJ.
The US taxpayer just added another $20 billion to their childrens' tax burden and every citizen of Germany gets to drop E100 into the trash can (maybe).
Notice that the German gift is possible. the US gift is certain.
But hey, who is going to keep Obama in luxury after he bankrupts this country unless his friends on Wall Street are kept happy by extending and pretending another day.
Does anyone else think that the spectacle of our Dear Leader wagging his fingers at his Wall Street masters with one hand while stuffing their money in this pocket with the other is somewhat sickening.
Probably not, I'm just too cynical.
The german gift via IMF is also certain, the extra bilateral cash is what we discuss about here (it might be against European regulations but lately noone over her in Euroland takes that too serious anymore), must be quite hard for Angie to explain to her potential voters in NRW (regional elections in May) why the heck we have to put some extra 8 Billion€ into the pot, but hey it makes Joe Ackermann happy, so what´s another 8billion taxmoney?
What's the big deal, the US activated its rescue package ages ago.
Where the Greeks failed is to pump up their stock market. Had they done that there would be no recession or package needed.
never waste a good short opportunity. everyone is expecting open at bear rally high.
"Thus Germany will not face any time pressure regarding its share of the aid package."
Translation: "Greece can go f%^& off!"
There is no longer (if there was ever) any accountability left anywhere in this world. Greece will get there money. The new world order mandate is "Reward The Failure!".
Remember that, following the Roman Empire fall, Europe moved to the Dark Ages. History loves to repeat itself.
As for the present events, the "Western World Empires" are coming to the end. New barbarians are at the gate. They are Asians!