IMF Head Flying To Spain

Tyler Durden's picture

IMF head Dominique Strauss-Khan is flying to Spain "to discuss global economic developments with the Prime Minister, and to consult with him on developments in Spain, including the government's economic policies and reforms" according to Reuters. The last time the IMF sent a delegation to a country was on April 15th when the IMF together with representatives from the EU and ECB took a jaunt over to Athens. A month later the country was insolvent. We can't wait for the official denial that this visit has nothing to do with the frozen Spanish liquidity market (like Greece), and that there is nothing to worry about (like Greece), only to end up with a full blown IMF rescue package of the Pyrenean country (just like Greece). This merely confirms the move in PIIGS spreads which despite the joke that is the market moved 10%+ wider on the day. The next domino is about to fall, and no matter how much rumored collusion between two French banks and the Federal Reserve is injected, the EURUSD is likely about to tank. At this point it is wisest to get out of any EURUSD longs, and finally follow Goldman's "advice."

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johngaltfla's picture

Time to hop on the JPY v. EUR gravy train...

 

LeBalance's picture

When the disembodied head of the I-MF flies into town, it is not good news.

"Honest folks, I am just here for Gelato?"  OMG!

Cursive's picture

LOL.  Was just going to post that DSK was probably craving some tapas action.

Cognitive Dissonance's picture

His vacation was scheduled for the Florida Panhandle along the GOM, Pensacola actually. But then.......well you know what's happened there. So it's off to the Spanish Mediterranean beaches.

Yeah, that's the ticket. Vacation with the wife and mistress.......in separate beach houses of course

Cognitive Dissonance's picture

Certainly helps explain the obvious and deliberate market ramp today. Unrelenting in the face of no news/bad news. Gotta get it higher so that it can deal with the coming drops.

RockyR's picture

hey guys, the weather is nice in Spain this time of year.  don't read so much into this.

 

fuu's picture

Didn't the Greece thing deplete the IMF coffers? Are we going to have to bail them out again, this year?

Turd Ferguson's picture

So...SELL GOLD! Down $1.50 so far this evening.

sangell's picture

Wouldn't know that if you watch the 'new' CNBC Asia. They no longer show oil and gold prices on their ticker.

Is that an 'editorial' or not I do not know but I did complain about it.

mephisto's picture

CNBC US had the wrong spot gold price for a lot of the day.

Maybe they cant afford the price feed license fees any more.

centerline's picture

GS is "making bacon" - sick bastards

 

I think ZH could have an alternate motto of "Doing God's Work Too".  Seriously, TD and crew, keep up the kick ass work.  Watching the fireworks from the ZH perspective is like front-row seats.

Buck Johnson's picture

You are correct, when the head of the IMF goes to a country there's more to it than the published accounts.  Spain needs money and they are insolvent, why else has the Spanish govt. been making banks buy or merge with other banks these past few years.  They are trying to extend and pretend everything is hunky dory, but in reality they are just moving chairs around on the Titanic.

Ned Zeppelin's picture

Is Dominique Strauss-Khan kind of hot? Maybe I need to get out more.

AndItsGone's picture

Dominique is a dude, Ned. Sorry. Not a hott dude, either. Old.

Ned Zeppelin's picture

I could have sworn I saw a picture on the news with some fairly hot chick in front of a bunch of old euro-dudes which said "she" was Dominique.  Well, having looked her/him up, I must, lady looks just like a dude. A non-hot, old dude.

Oh, and Spain is most definitely the next to pop, and BP will be bankrupt by fall.

 

seventree's picture

There is an odd symmetry between the global economic meltdown and the ongoing oil disaster. Seems like us homo saps got too smart for our own good, playing masters of the universe with forces we don't fully understand. But I'm sure the universe has seen it all before. 

CB's picture

I wonder what it's like to have DSK's job?  It must be super cool to fly around giving away lots and lots and lots and lots of other people's money. 

palmereldritch's picture

The pain for Spain flies mainly in the plane.

teambldr's picture

"In an extraordinary briefing to trade union chiefs last week,
Europan Union Commission President Jose Manuel Barroso set
out an ‘apocalyptic’ vision in which crisis-hit countries in southern
Europe could fall victim to military coups or popular uprisings as
interest rates soar and public services collapse because their
governments run out of money."

Read more: http://www.dailymail.co.uk/news/worldnews/article-1286480/EU-chief-warns-democracy-disappear-Greece-Spain-Portugal.html#ixzz0qzXEtilw

thislittlepiggy's picture

I wonder if Zapatero has had a chat with Papandreou yet about what happens when the IMF fly in?  Papandy flew over to Hungary to get the low-down on what's in DSKs 'toolbox' - Zapa may well be expecting various fiscal stimulae, not a 15 inch rubber cock that the IMF will broom handle in.....

psyops's picture

Ay, caramba!

and i thought this was only about those lying, thieving greek untermenschen

Cheeky Bastard's picture

The European Union, International Monetary Fund and the U.S. Treasury are planning to provide Spain with a special credit line worth upto EUR 250 billion, Spanish newspaper El Economista has reported citing sources close to discussions.

 

http://www.dailymarkets.com/releases/2010/06/15/eu-us-imf-planning-eur-250-billion-credit-line-for-spain-report/

 

mephisto's picture

Not a credit line. Repeat after me, this is not a credit line. That would be bad.

This is a special credit line, its a bit like a credit line but it's special. It's lighter, fluffier, softer on your skin, and doesnt cause internal bleeding if overused.

declineNfall's picture

how feeble is the american mind?

we have just had 18months of spin from PR, lobbyists and bought politicians to enable Wall st to continue its rape of america.

they won that  war. now they'll confuse the population by pointing across the sea and screaming "they're broke" and "foreign oil companies are dangerous". so we are now in the protectionist phase of this financial crisis.

wake up america the real problem is the $700bn a year interest payments, the $51bn contribution to wall st bonuses, no audit or transparency in the Fed, a president who makes GWBush look less criminal.

Spain is a pimple on Europe's backside that will cost less than a year of bonuses to solve.

Josephine29's picture

The situation with Spain and some of the other so-called Pigs continue to develop and I have spotted that government bond spreads are widening. I did notice that the notayesmanseconomics web blog has an interesting view on Europe's "shock and awe" SPV rescue vehicle.

"As to the SPV my thoughts turn to a problem with it that I wrote about from the beginning. Spain is responsible for 53.9 billion Euros of the funding. Should she have to draw from the fund how does that work exactly? If conditions continue to deteriorate I suspect that this question will occur to others too."

http://notayesmanseconomics.wordpress.com