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Market Surges On Non-News That Greece Has "Reached" An Austerity Plan
Somehow the fact that Greece has "reached" a deal on its austerity plan is supposed to be good for 100 pips on the EURUSD even though this is not news, and has been priced in for a long time. Furthermore it does absolutely nothing to dampen the fear and loathing that this plan will be met by the broader Greek population. But with markets that have absolutely no liquidity and monkeys controlling the buy and sell algos, one can only sit back and laugh.
From Reuters:
Greece has won the consent of a team of EU-IMF inspectors for its new five-year austerity plan on Thursday after committing to an additional round of tax rises and spending cuts, sources with knowledge of the talks said.
"We have a deal," said one of the sources.
Another source close to the negotiations said that a few remaining technical details would be finalised on Friday.
Finance Minister Evangelos Venizelos announced on Thursday Greece's Socialist government would lower the minimum threshold for income tax to 8,000 euros a year, increase the tax on heating oil and impose a one-off solidarity levy on income of between 1 and 5 percent.
What deal? Did the Greek population say they will vote for this austerity plan? This is nothing short of pathetic attempts to manipulate the market.
What was the alternative: no plan, in which Europe's bankers would all go bankrupt overnight? Right.
And here are the terms from the newly proposed plan:
Greek Finance Minister Evangelos Venizelos on Thursday unveiled measures to help Greece plug a shortfall in the austerity plan agreed with inspectors from the European Union and International Monetary Fund.
Venizelos said that when he took office last week, the shortfall stood at 5.5 billion euros. Subsequent adjustments brought the figure down to 3.8 billion euros and the measures announced on Thursday were aimed at closing that gap.
Following are the measures announced:
- One-off solidarity levy on personal income ranging between 1 and 5 percent, according to income: Those earning 12,000 to 20,000 euros a year will be taxed at 1 percent. Rate then climbs to 2 percent for incomes of 20,000-50,000 euros, to 3 percent for 50,000-100,000 euros and to 4 percent for those earning 100,000 euros or more. Lawmakers and public office holders to pay a 5 percent rate.
- Tax-free threshold on income lowered to 8,000 euros annually from current level of 12,000 euros, with the lowest rate set at 10 percent and exemptions for young people up to 30 years, pensioners over 65 years and the disabled.
- Annual levy of 300 euros on the self-employed.
- Small tax hike for heating and diesel fuel for companies.
- Public spending cuts of 400 million euros in 2011.
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come on robos, one more push to 1285
Intervention stick save off the 200dma on the SPX?
30 minutes to go.
Tanking again. Is there an Ascend Protection Team out there?
Yes, people with intelligence and independent minds.
What is amazing is that TLT still has a huge bid., nobody wants to take any chances.
They are still seeking safety in bonds.
Whats really amazing Momofader is you still post here.
Apple Gate Effect:
Put an apple on a gate, and the animal intelligence horse will walk over to it.
Idiots aren't much smarter than horses.
I'm sick of Greece. I wish they would come up with another distraction.
Who even gives a shit about Greece in the first place? Now its focal point of the universe? All so ridiculous.
Me too. The Greeks need to get serious and riot or bow down and accept their fate. What a bunch of indecisive f****-tardes.
In that case you should also be sick of California along with a few other states too.
if every time a market farted they blamed california I'd be sick of hearing about them too. my greatest fear is that Greece will be the main source of news for the next ten years. Blah!
Hey, be happy! At least is not day after day, month after month, decade after decade of Israel and the Palestinians. To be resumed shortly. This brief hiatus has been brought to you by the good folks at Goldman Sachs.
if you haven't all noticed, this is QE3!
There's plenty more manipulative bullshit where this came from. Unable to unmake the Frankensteins they created, governments have resorted to applying makeup to their heinous creations, hoping no one will notice that it's really a hideous monster. They might succeed for a while, but it eventually it will kill them, and maybe us.
"Solidarity levy" eh? Nice...
The manipulators want to create the perception that commodities are down and stocks can go up. No inflation and higher investment returns in your 401k. WOW, that's marvelous!
They do need to keep the 401K Brigades placated at all costs, theyre not yet ready to seize all 401K's, and if those people get nervous and placed sell orders it would be like a tsunami on a grass hut village.
It's key to the populous mood, PCE, confidence and allows them to refrain from raging in the streets. Could be one the finest boundary lines between the US and other places like umm, Greece and MENA....to add, for those who do not have 401k's, well, they've been on entitlement programs so long, it's more than a way of life, it's all they know. They'll never be affected regardless.
"Peanuts! Popcorn! Cotton Candy!"
I love the smell of beta desperation ahead of month and quarter end. Boat listing on commodity side RUN to technology side. #2/20
5%+ moves up for Linkedin, Pandora, Rimm...nothing but the best.
LULU from $84 to $106 in two weeks.
During the absolute worst news I've heard since 2008.
Now printing world record highs.
If only Eric King and John Hathaway piled their entire nest egg into that stock when it was at $8 in March 2009.
They would be:
- Done
- Finished
- Retired
Living on a tropical island somewhere, knee deep in booze and island girls
And it went from $97 to $83 in the two weeks before that. You can keep your bullshit ponzi stocks. Why do you always seem to disappear when they go down?
tzoo from $103.80 to $60 in 2 months.
that's another one of your infamous calls that folks ought to buy.
robottrader: the ultimate contrary indicator.
Robo could be ZH's Cramer if he only had a following.
interestingly, there actually are folks who run to his defense from time to time. must be the law of large numbers. kinda like the chicks who fall in love with some of the bad guys in prison.
you seem to be quite accurate in reporting what "happened". but can you really make any money looking and what stocks went up yesterday?
The couple of times you have posted lately about positions you're going to take...it seems like you ended up with a tad bit of egg on your face.
So with that in mind...don't you feel your criticizing other people for trades they failed to make is a bit...hypocritical? since your "trades" seem to have been...well...let's just call them "less than stellar"?
on another level the poster known as robottrader said that there was no way he personally would invest in the likes of lulu or tzoo. yet he has no problem recommending that eric king, john h or jim sinclair do it even though they are hard money guys who've spent a lifetime going in the other direction.
Robo is a mystery wrapped in a riddle inside an enigma...or just another stock pumping momo chasing idiot. Either or. I'm easy.
What do they make, Lulu? Paper diapers for old people? I'm sure there's a compelling story there somewhere--always appreciate your recommendations. Do you know some good manufacturers of plastic toys for tots? I bet that's a really hot area!
Market feels completely washed out.....coiled spring....all current news must be already digested.. from a trading view...it feels strong....long csco,rimm,nok,aapl
Thats not a coiled spring, thats a dog turd on your lawn.
well, it must be a Great Dane....
Nope, Sasquatch.
Nothing but short squeezes to buy them out at the top.
Check out the high beta stocks. Crm, Nflx, Amzn, Sina, Bidu, Cmg, Lulu, Pcln, Tzoo.
Looks like the Hedgefunds that are invested heavly in Oil are trying to avoid margin calls by running their favorite stocks hugely higher to balance out their losses in Oil.
Plus, rumors and Greece bailout doing just fine to pump the Markets and get them out whole.
While in a galaxy far, far away...Italian and Spanish 10yr bonds are breaking out of their Chinese driven ranges...and that will be that. One more day like today and they are gone, PIIGS bolted from the barn.
Completely manipulated.
I think they're gonna try to push it green with a last minute spike. I might short again for an after the bell correction if it gets near 1280.
fuck it...shorting again /ES @ 1279 x4 contracts. Looking to cover at 1272.50 before 4:15 hopefully.
blah...all out @1276...
Greek Finance Minister Evangelos Venizelos is a fed implant, of course he's going to reach agreements with this IMF/EU counterparts. Oh and this new agreement will certainly along with miracle grow(th) will take of care of solving debt w/ more debt. Definitely see why now this news was so bullish-- take away opinions and crush dissenters via their investment bias' and you say basically poo poo to you I'm in control.
That Lehman thing is a bullshit card to invoke fear-- Lehman failed and the world's richest are richer than before the credit crunch-- so where's the hesitation?
THose are the days, where im proud of b-ng ZH member,reader and defender...
I hate Manipulated markets. Today has been an evidence to sue all NYSE.
by the way, if nobody works cause they're striking , how in gods name are they going to ask more tax, and so on? Can somebody explain please? :-)
exactly, what better way to bring down a government, the IMF!
Within an hour after market close a story reversing this one will appear.
BRAVO!!! What a performance today!!! Among the best theater yet!!!
ROTFLMAO LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLO
How will they ever bring integrity back to these markets ?
answer: They never will !
The banksters and the politicos have destroyed it !
WilliamBonzai7 had it right last night with his post on Greek negotiating etiquette; the Greeks will likely go with the deal and still tell the IMF to eat it on down the road - the shows just beginning - ( and i'm tired of it already)
"Signed contracts may not always be honored."
They will NEVER pay this off.
They won't even try as implementation will send all taxpayers to their yachts and into international waters where they will live until the militay takes over.
(I had a double post so I decided to add something)
I love the Greeks. I disparaged them for a while last year but they are milking this far more than the Irish or Portugese. And they are just pulling the same shit they pulled last year. All they are doing is giving me more time to bet against this bailout group hug everyone's doing now. I hope to toast my Greek friends on the yacht they will have bought me when all of this crap finally breaks down.
Ok, c'mon guys. You've seen the disconnection from reality of the market time after time. You have the knowledge of how the establishment views the shorts. You understand how badly the current admin wants to take out any semblence that "things aren't working" within our beloved markets........yet you still pursue idealism in the market place? You still believe they won't strive to take out and feed off as many of you as they possibly can? Be freaking careful because you are literally hoarding your wealth into a rigged casino that has more control than many here would like to admit. Tyler needs to make a post discussing the casino and possible "non-event" sticksaves that will rush the market green in the face of a mess. Events like today are forseable and expected.
S&P bounced from the 200 DMA again. must defend that 200 DMA as it seems.
Oracle crashing after hours!
...oops sorry, that is Robo-speak.
Down 4.56% or $1.51
Holy Tax Hike. That will be great for the Greek economy. At what point do the Greek people burn down the Greek Parliment.
In other news today, heroin addicts swore to austerity measures in order to insure their supply of methadone...
Well played~
now, i understand why the market was down today ... for a moment i thought was because of other issues in this country ...
Isn't "triple witching" tomorrow?
"Double, double toil and trouble
Fire burn, and cauldron bubble."
I believe so, and is, according to:
http://www.thereformedbroker.com/2011/06/17/june-triple-witching-the-aftermaths-a-bitch/
Markets Off Lows on Routine Manipulation
(AP)New York - After a rare morning of falling stock prices, government agents were forced to adjust their market index generating algorithms this afternoon, resulting in a much better closing result, with the Dow ending the day off just 59.67 after being down over 200 points earlier in trading. After watching their monitors all morning waiting for that guy in Omaha that they've been toying with to get aggressively short, computer operators drove the market up, causing Mr. Omaha to take a crushing loss on his positions. The "official" reason for the sudden change in the market direction was explained as being due to a new Greek bailout deal being reached, which is obviously a done deal anyway since any officials against the deal have already been replaced and have had their legs broken.
how can anyone in their right mind invest in a fuckin stock market that rises and falls 3% on rumors about GREECE, jesus fuckin christ
Tax at 666 EUR / Month, in addition to VAT..... well, i gotta admit... they nailed rock-bottom.... in germany, that would be below what is called the "existencial minimum".... tough, maybe living costs are lower in greece. Then again... i guess it depends on what would be the rate at that income, and how steep the rate increases.
Does that plan include any cuts that affect politicians and reduces/simplifies unnecessary state buerocracy?........
*crickets chirping*
Not? Well, if the corrupt leaders want no haircuts, then why should the population accept any? I think that the population would be willing to accept a lot, IF the plan is fair, honest, addresses structural problems (which includes leaving the EMU).... and addresses political corruption and gives the population the power to veto programs directly, so that it in the future can no longer be legally ignored.
But such a proposal will not come without force. And this IMO is the root issue...... the reason for the unrest, and rejection of gov policies, is not because they are unwilling to make any concessions - it is quite simply because the population is supposed to shoulder all the burden alone, while nothing gets fixed about the structural root issues. Or in short: People are revolting because the leadership is incompetent, corrupt and parasitary.
I'll tell you who the Black Swan is gonna be in all this: The Greek Army. At some point they roll out the tanks and tell the Banksters....you want it? Come and get it. Game over.
I wish! I would love to see that. But who would be in charge of the army? The unfortunate thing is no one in a position of power (as far as I know) has incentive to kick out the banksters.
Advice to Greek Pols: Better make it official before your parliament building gets burned down. Good luck with that.
Nothing like an end-of-the-day stick save on BS "news". Austerity in Greece means tens of thousands of job cuts. Greece has no realistic chance to repay its debts. This is nothing but a desperate attempt to delay what is coming.
Meanwhile, the Federal Reserve's QE programs have failed to address the housing sector woes and the high structural unemployment issue. The ONLY card the Fed has left up its sleeve is debasement of the US Dollar in their desperate attempts to subsidize massive deficit spending by Congress whilst pumping the U.S. stock markets. No chance this ends well.
The Ben Bernank = The Great Chairsatan and enemy of the land
be careful RBC butnuts and others are creating a bulltrap for the EUR...
now we have Arab bank laying down bulltraps on most crosses. I hope these lazy a-wipe banks get shorted into oblivion in the next mth or so when the liquidity crisis hits.
One day I hear all the wailing and gnashing of teeth because the Euro has to go to zero. The next day all the blubbering goes to those who whenever there is an uptick in EUR/USD they go all nuts. It's called a market; I suggest you deal with it.
Same with gold and silver. If I traded off the bits and pieces offered up here on ZH I would have no trading account.
Stuff goes up and stuff goes down. Exactly where is the mystery in this?
good one.
The wording of the statement is what is crucial. They said that Greece had won a consent from the EU and IMF on the austerity budget, but have a few technical details to workout. The "technical detals" is the budget itself, the austerity in total. They saw how the US market was tanking and how the european market was taking a hit and decided to put out a statement to calm the markets. They needed something to hold off the market going into capitulation before the weekend. You would be a fool to go long this weekend, a complete fool.
Could any of us possibly imagine that we would live this nightmare? Our once free (only slightly manipulated) markets would turn into this? A 20 pt ES decline turns on a dime based on "austerity in Greece?". You have got to be kidding me.
I might give up playing this game - I've lost more money than I would have liked.
bulltrap