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Bundestag Passes EFSF As Levered Insurance Policy Motion
As expected:
- PARLIAMENTARY SOURCE SAYS GERMANY'S BUNDESTAG LOWER HOUSE OF PARLIAMENT APPROVES MOTION TO STRENGTHEN EFSF VIA LEVERAGE
- 503 vote in favor of the measure; 89 voted against, while four abstained in Berlin today - so this is a surprise we take it?
EURUSD promptly soars despite this having been priced in days ago and despite the addition by the parliament that the SMP program is now effectively over: "Motion states that EFSF cannot be financed via the ECB and that the ECB will no longer need to buy bonds in the secondary market." In the meantime, the latest batch of weak hand shorts, covers.
And now, on to Brussels.
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Thats fine. We just need another shakeout of the shorts probably (in credit mostly and US equities i guess to 1250s) and then we can proceed lower. Still not shorting though, booby trap!
Another version of short ban. Only buying is allowed, once we're all on board then, the Bernank buys, then we start over.
I'm finding it increasingly difficult not to be cynical about the European debt crisis. For all their posturing, European leaders STILL don't have a concrete plan for ring-fencing European banks from peripheral default risk. This is completely negligent on the part of European politicians who have a RESPONSIBILITY to recapitalize the banks and protect creditors from losses that will devastate the global economy. I was quite optimistic about Europe’s future following the short-selling ban on financial stocks and the proposed naked sovereign CDS ban, but the political gridlock surrounding the EFSF expansion has been simply appalling. This measure is LONG overdue, and its delay has caused severe damage to confidence in the banking system. European politicians were elected because they are the best leaders, and now is the time for them to LEAD and implement necessary measures even if they are unpopular. Many of my financial stocks have exposure to Europe, and my portfolio has been suffering as a result of their indecisiveness.
I can imagine.
"Motion states that EFSF cannot be financed via the ECB and that the ECB will no longer need to buy bonds in the secondary market."
This must be stinging. :P
+1,000,000. Thank you for all you do.
Personally, I loved the part about "strengthening the EFSF with leverage." Absolutely Orwellian.
MDBonus... Why not send Merkel/Sarkozy a text msg explaining how they are hurting your portfolio? They would certainly respond to anyone that ACTUALLY BELIEVES that they are going to accomplish anything.
So many cans are being kicked my ears are ringing...
I'd write LOL, except what you wrote could probably be a transcript of Timmy-the-tax-cheat Geithner's practice tirade in the shower this morning. :-|
"Lower House"
Looks like the bribery checks clearned.
Blessed are they who expect nothing, for they shall not be disappointed.
Psalm 666
Nice call. ZP agree. Took profits in Vol early this AM. Prob put that back on as SP approaches 1250s.
House of cards to be built taller on existing foundation!
Think your post got truncated.
... on existing foundation of sand.
>>>EURUSD promptly soars despite this having been priced in days ago<<<
Does that make sense?
Gold also appears to appreciate the news ... $1719.40 and climbing.
http://finviz.com/forex.ashx
I found four $20 bills on my lawn this morning while retreiving the paper... Don't recall hearing a helicopter fly over the house last night...
Maybe benny is dropping them from Blackbirds?
The devil is always in the details.
To bad algo's don't care much for details, only headlines.
The market is all about career risk. 19.3% of hedge funds above high water mark and only 16% of actively managed funds beating their benchmarks.
Career risk is the fundamental reason for this rally. Greed combined with threat of job loss is the most powerful motivator.
Ya, that's the CNBC talking heads theory..... Problem with that theory is, if it's this easy for managers to move the market their way, then where have they been the past 10 months? The other side of that coin is also, once the sand starts crumbling, managers are going to lock in positions, and not risk blowing what they've made back in the last 30 days over the next two months....
The pop this am is the final squeeze- Euro news has no where to go but down now.
You should get a pony now for sure!
Fear.....sometimes so much that you can smell it.
Fear at #OWS, because everyone knows something is wrong, but not what.
Fear at TEA groups that see how far the reality is from the ideal, and are alarmed by the direction.
Fear at the White House,
Fear and Hate on the Air and over the Web.
Action conquers Fear.
Act and you can be free.
If your job is crushing your spirit QUIT NOW !
"Action conquers Fear.
Act and you can be free.
If your job is crushing your spirit QUIT NOW !"
......................................
Let me see if I have this right... I should quit my job because it is crushing my spirit...
So then I can live on the street and be hungry... and disspirited?
Eureka!
"So then"... you can do as you choose.
YOUR choice => Freedom.
Right it was priced it, but only once....lots more pricing in to do here. After all, its the only time in history where money printing strengthens currencies.
Don't forget your towel.
there's only one way to collect on an insurance policy!
There will be enormous kneejerk reactions to today that may well lead in tomorrow. ALl is to be faded as time wears on and the weight on economies take over. And that is the bullish argument folks. If Germany leaves, all bets are off. But right now it appears they are merely pushing for time, something we are all greatly fatigued with.
are the german riot cams set up yet?
Let me fix it for you:
are the usa riot cams set up yet? No not yet but you can check youtube anytime.
http://www.youtube.com/watch?v=QngE6kKk8Lg
The fact is, most people in the Bundestag don't even know what the EFSF is or how much money it costs.
So eh.
we need a hitler video on EFSF ..PLZ
When he wrote that there are the creaters of civilization, the maintainers, and the destroyers, he was merely restating what all the great historians up to his time had agreed upon: That is, that all the great Western civilizations had fallen due to the same people.
So who inside the hallowed temples pf Brussels is arguing the case for the taxpayer?
The Germans back home might be fighting their corner from afar, but who in France, Spain, Italy, Greece, Ireland, Portugal, UK, USA is trying to protect the pensioners, savers, taxpayers. I suspect nobody is. The politicians are in thrall to the bankers and their own personal bail-outs and and post-career consultancies, and so are the civil servants. Don't be surprised therefore, to hear a bizarre, incomprehensible solution magicked-up, with absolutely no detail whatsoever (...because the proletariat wouldn't understand...)
Read your history, leaders of Europe. We live in no more sophiticated times than at any point in the past 2,000 years. When the masses have had enough, they let you know. There is an old saying, we are only ever a week away from anarchy, the time it takes to run out of food or cash and the instinct of self-preservation to kick in.
So what does the ECB no longer needs to buy bonds on the secondary market mean? They have been the only reason Italian bonds auctions haven't failed...is this a mandate or some sort of weak-handed hopeful observation?
Leverage never "strengthens". Leverage always makes things bigger, but weaker.
I'm confused... does this mean I should continue stockpiling Spam?
This is a text book example of not having any answers.
This is how a full blown blowout crisis happens.
Someone has to say something as the house burns down.
They will talk and talk this one to death. Literally.
Greek 1-yr GGGB trading at around 33 cents on the dollar, if anyone cares.
One step closer to saving the euro. In a few hours we can definitely laugh at folks like Zafer Onat, who is already writing an obituary for the euro.
http://www.bloomberg.com/news/2011-10-25/eurozone-collapsed-euro-will-disappear-finansinvest-ceo-says.html
China and the IMF will save us. And remember Gonzalo Lira!
Yeah, cause China isn't looking to dominate markets- they just want to get along.....
Every politician supporting Merkel has been rewarded in one way or another by the system owned by the banksters. Save the bankster-owned Euroland and doom the taxpayer-serfs! Tell the people you are making painfully difficult decisions that however unpleasant, must be made. Gee, same script used in 2008 on the other side of the Atlantic. Recycling is great.
idiot politicians
They are just lawyers doing their jobs defending their clients’ interests regardless of who these clients are and despicable crimes their clients committed.
I guess if your going to fail, lever up and fail BIG.
Excuse me, what kind of a chart is that???
A 50 pip move... thats nothing! A 150+ move might be interesting but not rare either.
It seems ZH has become a victem of its own fantasy.
Buy Gold, Silver and Platinum.
And buy a whole god Dam lot of it.
Who do they think bails out the EFSF when that leverage goes south? Oh yeah, taxpayers and future generations. Are these people nuts? (Rhetorical question)
For the last two centuries, with few exceptions, Germany foreign policies were total disasters.
Now, Germany thinks that they can save the world just supporting economically & politically failed states as Greece, Italy, and Spain.
Congratulation to Anglo-American masters who installed in Germany utterly mediocre political leaders who are terrified of their own shadows.
PS
"A war is just a continuation of economic policies by other means." V. Lenin