Daily US Opening News And Market Re-Cap: October 5

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Wed, 10/05/2011 - 08:20 | 1740654 lapedochild
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•    IMF recommended that the ECB should cut rates if downside risks persist, while the ECB may need to offer longer term loans to banks. (Sources)

 

NO, their inflation is approaching 3%, 1 full % over their target, if anything, they should HIKE the rate

 

ECB's Noyer said there was no concern over France's ‘AAA’ rating in light of the Dexia guarantees.

How can an ECB member state this!!!!!

Wed, 10/05/2011 - 08:32 | 1740674 ratso
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The EU like the US will gradually or more quickly inflate themselves out of the stangle hold of debt.  This is the way it has always been.  

Noyer knows they can't hold on to the AAA rating and the choice is float Dexia and let the AAA go or sink Dexia and try to hold on to the AAA which will be down graded any way.

 

The sky is not falling today.

Wed, 10/05/2011 - 08:29 | 1740675 Caviar Emptor
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NO, their inflation is approaching 3%, 1 full % over their target, if anything, they should HIKE the rate

You've touched on The Biflation Conundrum: they have inflation from excessive monetary stim but they can't raise rates because of the deflationary spiral already underway in the real economy. Middle class: screwed. National governments: screwed. Banks and Wall Street? Caviar time. 

Wed, 10/05/2011 - 08:22 | 1740661 msmith
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S&P 500 corrective price action should turn back down soon.  http://bit.ly/nhJwYz
Wed, 10/05/2011 - 08:25 | 1740664 wang (not verified)
Wed, 10/05/2011 - 08:26 | 1740667 Caviar Emptor
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Euro and US are examining ways to transfer money from middle class to banks and bankers. That about sums it up. 

Meanwhile the US economy begins a vicious downward spiral of bankruptcies (new and imminent ones being announced daily this week) causing more job losses and demand destruction. BUT prices will not come down as they normally would because of the effect of money printing throughout the world to save the banks, Wall Street and now to bail out sovereign governments who took on bank and Wall Street debt. 

THe Greater Depression is under way. Lotsa Luck!

Wed, 10/05/2011 - 08:30 | 1740679 ratso
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Sorry but you are wrong on both points.

Wed, 10/05/2011 - 08:36 | 1740699 HelluvaEngineer
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Wow.  Kinda hard to counter that argument.

Wed, 10/05/2011 - 08:26 | 1740668 buzzsaw99
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Poor pension funds, they get a better buy-in level for equities in October but get screwed on bond prices. Bennie the Schmuck making sure you pay too much somewhere.

Wed, 10/05/2011 - 08:46 | 1740728 GOSPLAN HERO
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BTFD in PM!

Wed, 10/05/2011 - 09:11 | 1740866 gianakt
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Dexia has a large short position in gold and this is were the bid in gold is coming from today!!!

Wed, 10/12/2011 - 11:55 | 1766006 karmete
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