Portuguese President Prepares To Accept Jose Socrates' Resignation; Government Collapse Imminent

Tyler Durden's picture

From Market News: "Portugal's President Anibal Cavaco Silva is prepared to accept the
resignation of Prime Minister Jose Socrates and is getting ready to call
an election to choose a new government, Portuguese daily Jornal Publico
reported on its website Wednesday evening....The political instability that would ensue from a collapse of the
government, combined with market tensions that have pushed Portuguese
ten-year bond yields to a euro-era high above 8%, seem likely to
increase the pressure on Lisbon to seek a financial aid package from the
European Financial Stability Facility and the International Monetary
Look for Portuguese, Irish and all out toxic fallout (pardon the pun) to be bought with impunity by JC Trichet as the entire market goes bidless.

More from MNI:

The news comes as the Parliament nears the end of a debate on the minority Socialist government's proposed package of new austerity measures amid strong signs that the bill will be defeated. Rejection of the measures, which are strongly endorsed by Portugal's European Union partners, would amount to a vote of no confidence in Socrates' government.

Socrates is planning to meet with Silva at 19h00 GMT/1500 EDT, and it is widely anticipated that he will tender his resignation in that meeting if the parliamentary vote goes as is widely expected. Socrates is scheduled to address the nation at 20h00 GMT/1600 EDT this evening.

Never too late to load up on those Irish CDS. Just for heaven's sake do not use Citi, Bank of America, JPM, Goldman, Deutsche, RBS, Barclays or BNP as counterparties.

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John Law Lives's picture

That should be good for a +100 close on the Dow Jones.  If an asteroid hits the Earth, we could see +1,000.

Id fight Gandhi's picture

Astroids have gold in them. That would drive down gold and put more money into Netflix.

snowball777's picture

Really? How much? Every one?


Arch Duke Ferdinand's picture

""Astroids have gold in them. That would drive down gold and put more money into Netflix.""


bbq on whitehouse lawn's picture

I dont know about astroids, but Mars, Mercury, Venus and even the Moon have some gold and silver.

We could finance a ship and crew for under 1 billon.  First come first serve.

hedgeless_horseman's picture

What about Uranus?

The tola is an Indian unit of weight. The most popular gold tola bar is the 10 tola, equivalent to 3.75 oz or 116.64 g. Its gold purity is normally 99.9%. 10 tola bars are traded mainly in the Middle East and Indian Subcontinent.  10 tola bars are distinctive in two ways. They have smooth, rounded edges and, in the past, were an ideal size for smuggling, inside

a smuggler’s body, if necessary. Most have no serial numbers.

A Man without Qualities's picture

The most popular tola in India is made of Charas...


DosZap's picture

Well, god luck getting past the TSA X Ray machine that is emitting 100x's their posted dosage.

Gold up your ass or not........it will see it.Even baggie stuffers are hard pressed now to get thru.

hedgeless_horseman's picture

While you are checking Uranus, look for a string dangling out, as it may be attached to 1 or 2 Baht doughnut bars from Thailand. 

If you come up empty, check that Swiss guy in Hong Kong, the one with the ponytail who hangs out at the spas in Mongkok, as he looks to be a sure thing.

WALLST8MY8BALL's picture

Thank you for finally explaining String Theory to me!

PY-129-20's picture

Yes, and Gold can be produced. Just ask your local Alchemist. Transmutation of lead into gold? In 15 minutes.

Fidel Sarcastro's picture

Indeed!  According to all of the Keynesian professors & analysts (and CnBS economists) a mega-asteriod would be quite bullish.

youngman's picture

and housing would jump because of the need for new housing let along the new land available for building...

bbq on whitehouse lawn's picture

Thats great news!  We have one incoming in 2014.  Maybe we could snag it or maybe it will snag us :)

SheepDog-One's picture

Remember to put it in context though as the DOW is really a Chinese index.

Dr. No's picture

Put your faith in the Tao

snowball777's picture

The Dow that can have faith put in it is not the true Dow.

Dr. No's picture

You are right, put your faith in the Dow, not the Tao.

Wynn's picture

The dow that can be told
is not the eternal Dow

mdwagner's picture

Computers would keep driving up the market even if all human beings were exterminated.

Bazooka's picture

The many comments like yours where current events don't explain the current market movements....they are all based on a surprise that amidst bad news, the markets move up.

This is linear extrapoloation and the same will occur when markets will plunge with no bad news.

Social mood is what drives the markets and it's not linear nor statistical. Social mood is random but patterned.

If Wave C did end at S&P 1344, then the current onset will mean that huge plunges in the market lie ahead, many of these plunge days could be with no bad news.....

John Law Lives's picture

Thanks for the psychology lecture.

The stock market has been moving up because The Fed has gunned the M2 supply and speculators are taking advantage of the artificially created conditions.

Catullus's picture

Market plunges are a linear extrapolation of selling?

SheepDog-One's picture

No assclown, Bens 'cntrl/print' key is what drives the markets. End of story case closed.

Dr. No's picture

Not completely true.  When ben is blathering at a conference away from his computer, the Algos drive.

Tortfeasor's picture

The fair is in town.  The carneys are selling Irish CDS for cheap. Counterparty risk seems on par with BoA.

Duuude's picture

Where's Glaucon ?

tickhound's picture

The perma-bulls have replaced the "eternal growth model" with "wreck and rebuild"

snowball777's picture

I was thinking "Wreck and Reinsure", like that nightclub owner with a bookie's enforcer on his tail and a bunch of matches.

tickhound's picture

once again... vividly well put

vote_libertarian_party's picture

Why is this a big deal.  The ECB will just throw some funny money at them and it's FIXED (well....for a few more months)


tink tink tink (the sound of another can being kicked)

Lord Welligton's picture


Let's hope Spain follows and the ECB/German madness ends.

long juan silver's picture

What? Are they pulling out of the Libyan collation also?

John McCloy's picture

Markets surge on non payment of debt to bankers.

AccreditedEYE's picture

Markets surge on more issuance of the ECB's Super CDO program. Who in their right mind buys this crap when you can buy the sovereign German or French paper instead? These institutions are exposing themselves to more risk, not less... (buying the entire union vs. just quality) while at the same time moving farther away from the direct repayment source. Such garbage.

SheepDog-One's picture

'Better n expected' Im sure and certainly 'priced in' no doubt...good for 200 flash dash on the DOW? Heh heh, enjoy while the charade lasts, it wont be long.

long juan silver's picture

Meanwhile the DJI is up 60.

No sign of intelligent life here.

John Law Lives's picture

Yeah, I guess the lowest monthly total in new home sales on record (dating back ~50 years) is bullish.

snowball777's picture

And the EUR/USD just...hoverglides.


unununium's picture

Heaven only knows the mischief made by freshly printed EUR,JPY,USD.

Caviar Emptor's picture

Excellent: more biflationary news! The ECB rescue package will simply reinforce what's already happening: raising the value of paper and deflating real economic activity. All those predictions I've made here on ZH have come true even here in the US: look at today's housing news in the face of surging oil and raw materials. Look for more of the same until the Jasmine Revolution spreads to the US. 

SheepDog-One's picture

No revolution in the US until McDonalds discontinues food stamp acceptance on chikin Mcnuggets.

Caviar Emptor's picture

Trouble is the price of 1 McNugget will be more than a weekly salary

primalplasma's picture

I didn't know that McDonalds accepts food stamps. I actually think that this is the future. ...McDonalds and Taco Bell as government sponsored food distributors.

Put your money on MCD!

SheepDog-One's picture

Primalplasma theyve been accepting food stamps for quite a while, go in and see!