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Details Of EFSF Emerge, However It Is "Too Little, Too Late"
Finally some details of the mythical revised and most certainly Dead on Arrival EFSF program, to be fully announced on Friday, emerge with Retuers bringing the scoop. Here are the preliminary bullets:
- EFSF to be able to grant two types of precautionary credit lines, normal and enhanced, based on IMF instruments.
- Typical size of both types of EFSF precautionary credit lines for Euro-zone sovereigns could be between 2 and 10 % of GDP according to a document
- To be eligible for EFSF precautionary credit lines Euro-zone sovereign must respect EU budget rules, have sustainable debt, external position, no bank solvency problem and seek to reduce macroeconomic imbalances according to a document
- Both types of EFSF precautionary credit lines would be for 1 year, renewable for 6 months twice
- IMF involvement in design and implementation of EFSF precautionary credit lines will be sought in all cases according to guidelines
Of course, if bullet point 3 is actually enforced, nobody would be eligible. Which means the whole framework is a joke. Yet nothing here changes the fact that with €100 billion set aside for bank recaps, a woefully low number and one which will do nothing to assure investors that banks have sufficient capital, there is still not enough cash to "guarantee" all future issuance, as was described in great detail previously. Lastly, it is too late to do much if anything except spike the EURUSD by a few hundreds pips for a day or two.
More from Reuters:
"The European Financial Stability Facility (EFSF) will be able to buy bonds at primary auctions at market price and, as a general rule, no more than half of the issue on offer, guidelines for the EFSF obtained by Reuters showed. The EFSF will be able to participate in auctions of those sovereigns who are either already under an emergency loan programme or have an EFSF precautionary credit line. Money invested in the bonds will be part of the overall existing programme or credit line. "As a common point, the intervention of EFSF would be at market price," the guidelines, to be discussed on Friday by euro zone finance ministers, said. "As already expressed, it seems more adequate to consider that participation in primary market programme would take place only if a reasonable participation of private investors at a rate not excessively above the EFSF funding rate as the Reference Funding Rate is possible," the document said. "The analysis whether a rate is excessive should be based on an assessment of the financing needs and gap of a country in the context of the overall monitoring, as well as an assessment of current market conditions," it said."
And, at the end of the day, it is all irrelevant - As the "experts" says, it is "now too little too late" per Reuters.
Exhausted by two years of crisis, Europe and its trading partners are hoping Chancellor Angela Merkel will ditch her customary caution and sign up to a "big bang" solution at Sunday's EU summit -- but she is unlikely to deliver.
The German leader, accused by her critics of worsening the euro zone's debt debacle with her hesitant approach, has tried to dampen expectations of the meeting.
"Government debts were built up over decades and that's why they won't be removed in one summit," she warned this week, saying the meeting would be just one of several important steps.
French President Nicolas Sarkozy, however, has heaped pressure on Merkel by declaring that Europe's fate would be determined in the days to come.
Share markets and the euro fell on Thursday due to doubts about the leaders' ability to come up with a comprehensive plan to solve the debt crisis at Sunday's meeting, the latest in a series billed as crucial for the euro zone's future.
"It is again the week of all weeks, the summit of all summits. It is again crunch time in Brussels on Sunday," wrote Carsten Brzeski, senior economist at ING.
EU leaders are set to tackle three questions -- bank recapitalisation, a bigger writedown of Greek debt and a possible leveraging of the European Financial Stability Facility (EFSF) bailout fund to boost its effectiveness.
France and Germany are at odds on how the fund could be leveraged.
Sarkozy's tough words, however, are unlikely to outweigh domestic pressure on Merkel, leader of Europe's biggest economy and the biggest contributor to the EFSF, not to sign a blank cheque for struggling euro zone members.
"I don't think they can meet expectations. The summit will fall well, well short of the kind of big bang needed to reassure the markets," said Simon Tilford, chief economist at the Centre for European Reform in London.
Tilford fears markets will react badly next week. "By the time the Germans finally budge, it'll be too late," he said.
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And not a single fuck was given..
The robots care. No doubt the algos will spike the markets shortly in another fairytale rally.
"Of course, if bullet point 3 is actually enforced, nobody would be eligible."
The one sentence that says it all.
And if they did meet those eligibility requirements they wouldn't need the thing to begin with!
EXACTLY!!!
Imagine 17 ex-convicts, fully armed and high on drugs, discussing their new 12 step program to disarm themselves and get off drugs for good.
It's Bistromathics!!
"Bistromathics itself is simply a revolutionary new way of understanding the behaviour of numbers. Just as Albert Einstein's general relativity theory observed that space was not an absolute but depended on the observer's movement in time, and that time was not an absolute, but depended on the observer's movement in space, so it is now realized that numbers are not absolute, but depend on the observer's movement in restaurants." - Douglas Adams
Even Bistromath makes some sort of sense -- Having Govts bailout banks that then turn around and loan the funcs to Govts, etc, goes beyond the pale! Someone needs to place an SEP (Someone Else's Problem) field around ALL the banks.
Indeed. Remind be again just how strictly the 'Tough' and 'Vital' assessment criteria that were proposed for the Greek bailout are being enforced?
Troika: G-Pap, you haven't even tried to comply with out strict and tough conditions for the bailout.
G-Pap: So what are you gonna do about it assholes?
Troika: Ummm - give you the money anyway?
G-Pap: That's right. You give me the money anyway. Wouldn't want that lovely Euro of yours to have an 'Accident', now would we?
should be good for a 20 handle drop in the S&P!
Occupy Wall Street Demands Global United Nations Tax and Worldwide G20 Protest
http://sgtreport.com/2011/10/occupy-wall-street-demands-global-un-tax-an...
A Global United Nations Tax is the agenda of the oligarchial 0.01%
The 99.99% should be ashamed of themselves.
OWS will eventually degenerate into class warfare. Too many people with too much free time who don't even know why they are demonstrating. This is the definition of sheeple.
"Too many people with too much free time"
There are probably a billion unemployed worldwide. Too much productivity. What better way to occupy themselves than to
annoy the 1%!
This isn't going to be American Revolution Redux. Its going to follow the model of the French and Russian revolution.
American was populated with the best and brightest, they took the high road.
Enjoy yourselves, its later than you think. Most of you aren't going to die of old age.
You give shitty sooth. Just sayin.
Ignore it, it's bullshit.
Just someone else trying to hijack OWS or trying to subvert it.
It's coming directly from the people who set up OWS.
Then they're even bigger idiots than I took them for.
Adbusters is asking people all around the world to march on Oct. 29.
To hell with marching for a global United Nations Tax, we need a call for a counter march.
The Drudge Report is the biggest website outside the corporate media, they should call for this.
Sounds like World Government to me.
In a way we already pay a UN tax, since our tax dollars go to fund that worthless organization.
Bigger rumor is that Gaddafi shit himself. . .
You would think that extra ventilation holes in yer bod would be a good thing in an equatorial country...
Fight the IMF, Fight the Central Banks biatchez!
Sarkozy wants to dance the hip-hop, Merkel wants to waltz. A compromise is such a hodge podge...it'll lead to trying to organise a square dance in a deep round well.
Ouch, hope this isn't bottomless!
http://www.youtube.com/watch?v=yOUqx0gZiGQ
Better to throw all these jerkz into a mosh pit...
If that's it they might as well put the whole of the EU under IMF control.
Can we just FADE this crap now instead of waiting until next week? Going through the motions is so...old farty. This the internet generation. My ADD is kiling me.
maybe I'm a different breed, blame it on my add baby...SAIL! SAIL!
Squeeze my bratwurst until the juice runs down my leg.
Don't you know Tyler? The rules and laws are just for the little people.
"The European Financial Stability Facility (EFSF) will be able to buy bonds at primary auctions at market price and, as a general rule, no more than half of the issue on offer, guidelines for the EFSF obtained by Reuters showed."
" "The analysis whether a rate is excessive should be based on an assessment of the financing needs and gap of a country in the context of the overall monitoring, as well as an assessment of current market conditions," it said." "
This is turning Orwellian. Will natural buyers of bonds really believe in this game going forward? I think some new punctuated equilibrium (read: enlightened attitudes about future of financial system) is about to become more widespread.
hey here is three trillion - YEAH! oh, no one qualifies to use it? :D
When you run out of can kicking road, pave some more......
CARSH, bitchez!
"To be eligible for EFSF precautionary credit lines Euro-zone sovereign must respect EU budget rules, have sustainable debt, external position, no bank solvency problem and seek to reduce macroeconomic imbalances according to a document"
Wait a minute, wont we need a "central governmental body" in order for the abovementioned point to be more "efficiently" "enforced" ?
maybe they could cut to the chase...pay each banker 5 years worth of bonus and then let everyone default...everyone happy...the bankers got their money which is all they ever cared about, and the defaults that are inevitable can start
WTF is "sustainable debt?" Govt Debt should be decreasing, not going up or even staying level!
http://www.infowars.com/tyrell-corp-does-one-super-corporation-run-the-global-economy/
http://www.infowars.com/poll-declares-majority-of-zuccotti-park-ows-would-vote-for-obama/
http://www.infowars.com/u-s-israel-launch-new-phase-of-cyber-warfare/
http://www.infowars.com/napolitano-dhs-authorizing-illegal-aliens-to-work-in-u-s/
http://www.infowars.com/10-mind-blowing-facts-which-show-how-members-of-congress-and-federal-employees-are-living-the-high-life-at-our-expense/
NoWorries, Charlie Sheen and PeeWee Herman are flying over now to advise the ECB to give them some practical sense solutions.
Tiger blood and Adonis DNA Bitchez!!!!!!!!!!!!!
Brilliant! In order to qualify for EFSF assistance, you must not need it.
Catch-22
How in the hell is 'someone' going to hijack a fake 'spontaneous movement'? OWS is a sham. OWS is nothing more than an attempt by the global left to divert growing (and soon enough exponentially growing) public anger concerning the present state of the ponzi. OWS is a fucking globalist wet dream and they would love nothing more than to further consolidate power into the hands of the few via authoritarian government.
Not at all hard to perceive.
This may be just what we need to get the last spike down in the stock market. I bet it's short lived and we rally hard from there!
Here's why - http://bit.ly/oQnTA8
'Both types of EFSF precautionary credit lines would be for 1 year, renewable for 6 months twice.'
OH YEAH -- a year or two should plenty of time to turn this mess around!
If you can't blind them with brilliance, baffle them with bullshit.
This is just the "latest and greatest" plan to "solve" the crisis. We will have a "new" plan4 coming next month and the month after that the Iplan5 should be out, or not.
I'm waiting for Plan 9
Silver price prediction chart 2011-2017:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=680#p34623
NASDAQ megaphone pattern on daily chart indicates big move ahead.
USD weekly chart remains bullish and as predicted for some time further dollar upside expected.
http://stockmarket618.wordpress.com