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

Tyler Durden's picture

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lapedochild's picture

•    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!!!!!

ratso's picture

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.

Caviar Emptor's picture


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. 

msmith's picture
S&P 500 corrective price action should turn back down soon.  http://bit.ly/nhJwYz
Caviar Emptor's picture

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!

ratso's picture

Sorry but you are wrong on both points.

HelluvaEngineer's picture

Wow.  Kinda hard to counter that argument.

buzzsaw99's picture

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.

gianakt's picture


Dexia has a large short position in gold and this is were the bid in gold is coming from today!!!

karmete's picture

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