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IMF Head Flying To Spain
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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Time to hop on the JPY v. EUR gravy train...
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!
LOL. Was just going to post that DSK was probably craving some tapas action.
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
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.
hey guys, the weather is nice in Spain this time of year. don't read so much into this.
Didn't the Greece thing deplete the IMF coffers? Are we going to have to bail them out again, this year?
So...SELL GOLD! Down $1.50 so far this evening.
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.
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.
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.
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.
Is Dominique Strauss-Khan kind of hot? Maybe I need to get out more.
Dominique is a dude, Ned. Sorry. Not a hott dude, either. Old.
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.
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.
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.
The pain for Spain flies mainly in the plane.
new hero
"In an extraordinary briefing to trade union chiefs last week,
Read more: http://www.dailymail.co.uk/news/worldnews/article-1286480/EU-chief-warns-democracy-disappear-Greece-Spain-Portugal.html#ixzz0qzXEtilwEuropan 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."
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.....
Ay, caramba!
and i thought this was only about those lying, thieving greek untermenschen
http://www.dailymarkets.com/releases/2010/06/15/eu-us-imf-planning-eur-250-billion-credit-line-for-spain-report/
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.
European Markets not too spooked by this news, so far - despite plenty of bearish coverage. I dont think anybody has the will anymore to put trades on in front of option expiration. Even as far back as June 4th, we saw vol barely spike even when the indexes had a sharp move down. Perhaps there are fewer mug punters left to bid it up these days, after all, most know how expiry is likely to be played. I still have long dated out of the money puts on the indexes which have obviously not fared well this week, but I am far from `all in` and will let Mr Average rear his ugly head (fun money only these days) before month end. As noted already we ARE getting a lot of coverage about the 200DMA being breached to the upside, which I take as confirmation that there is no good news to report as far as fundamentals go.
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.
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