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European Commission Says It Is Willing To Envisage Direct ESM Bank Recapitalizations
Update: sure enough "EU says accommodative ECB has little scope for more stimulus"
In a headline that is far less than meets the eye, we read the following:
- EU WILLING TO `ENVISAGE' DIRECT ESM BANK RECAPITALIZATIONS
- EURO ZONE SHOULD MOVE TOWARDS BANKING UNION
As a reminder, this is the EU... not the ECB... and not Germany. The same EU which has for a while now been pushing for Germany to foot the bill. The same EU which without Germany's funding agreement, is a faceless zombie. Recall yesterday's Reuters story that made the rounds: EU proposes cross-border bank rescues. and which as Reuters admitted is "likely to upset some members, particularly Germany." Same here. As expected the record number of EUR shorts send the currency into the sky, but we expect it to come right back down once it is understood that Germany has yet to say anything on this plan.
And here is more on the story, which is nothing but a rerun of yesterday's Reuters report, this time from the WSJ:
The 17 countries that use the euro should consider setting up a "banking union" that allows them to share the burden of bank failures, the European Union's executive arm said Wednesday in a report on the currency union's crisis-fighting efforts.
To further stop expensive bank bailouts from pulling down governments' own finances, allowing the euro zone's new rescue fund to directly boost the capital of banks "might be envisaged," the European Commission said.
At the moment, any financial aid to prop up struggling banks would have to be requested by the firms' own government, pushing up its debt and deficit burden. The fear is that even if the government gets the required bank aid from the bailout fund, it would damage its efforts to raise money from the bond markets to finance the rest of its operations.
The Commission's suggestion for a banking union comes as vulnerable euro countries like Italy and Spain have seen borrowing costs jump in recent weeks while the euro's value has slumped. Spain's troubles, in particular, have been compounded by the weakness of banks suffering the effects of a property-market meltdown.
Investors have also shied away from the currency union's weaker members amid concerns that Greece may have to leave the euro and spark further turmoil in the bloc's financial sector.
The Commission publishes on Wednesday specific recommendations for all 27 EU countries as well as the euro zone as a whole. Many economists have called on the Commission to give countries more time to cut their budget deficits to avoid pushing them further into recession.
In its own staff report, which was released ahead of the recommendations, the Commission paints a dark picture of the euro zone's economy—even in relatively strong countries.
"Even member states that had been regarded as financially sound became affected and the crisis became systemwide in the second half of 2011," it said. "This reveals the strength of spillovers in the euro area…and is a call against complacency for those seemingly unaffected."
And much more recycled "news" in the article itself.
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This is a mirage market! Manipulation extraordinaire!
Check out oxfam's solution to all this:
http://policy-practice.oxfam.org.uk/publications/download?id=448866&dl=h...
Read it a weep motherfuckers, its telling us all to be outraged that people dare to question the wisdom of giving more power to the state. Seriously, read it, it's fucked up. Austerity is evil, governments can fix the economy, we all just need to give up more freedoms, rights and money of course.
Yes charities are yet another institution that's been completely trashed (politicised).. jobs for the boys (creepy lefties) ...fuck 'em
Covert bailouts for Spain and Italy?
So, if the banks start piling into bonds, then the ECB should backstop said banks from failing, despite them failing is due to them backstopping the country in question! Result!
**EU WILLING TO "ENVISAGE" ANYTHING THAT WOULD KEEP THEIR MASSIVE TAX FREE SALARIES FOR A FEW MORE MONTHS**
WTI broke through 90, DXY inching towards 85, stocks down YTD; I think I just heard Ben hit Ctrl.
DXY inching towards 85
And that is the biggest joke yet.
Ah-ha-ha-ha-ha-ha! Lollars are plunging on EU news. Ben's hands have moved away from the keyboard for the time being.
FYI: 10Y doesn't seem to be playing along with the rumor herd.
Yesterday...
http://www.reuters.com/article/2012/05/29/us-eu-banks-idUSBRE84S0X120120529
European Union countries could be obliged to bail out one another's struggling banks, according to a draft EU law that marks a big step towards greater EU financial integration likely to upset some members, particularly Germany.
Reuters... <chuckle>
Stubborn dis-info for mass consumption.
The law COULD come into effect in 2014. Ha!
Two years late and Trillions of zeuros short!
EU...big on words, small on action.
Talk of action must have shook tons of shorts to cover.
Why ban short selling when you have the EU politicians and bureaucrats?
What a crock of shit the markets have become.
Gotta love checks and balances: the first comes out with a statement then the second one comes out and tells everyone that the third one does not agree. Brilliant. Effective.
no shortage on plans, in fact, plenty of them.
reminds me how I was told once that if I go to the doctor I'd be fine in one week and if I would not I'd be sick for seven days...
Edit...double post
The real mirage is the fact that these crooks can just print paper money and all the people have confidence in it. THAT'S what's so incredible about this whole thing. Reject the paper, the tools of the crooks, and tell them you're not paying ANY MORE!!! STOP PAYING TAXES!!!!! None of the elite pay taxes why should we?
this is in fact what is happening in the euro-zone. In fact "it is an entirely rational response" as well. The problem is not the banks...the COUNTRIES are having funding crises. The banks simply "fail as a matter of course." Chaos and anarchy would be the "normal" result...although in our "new normal" instead you have massive speculations "to shake 'em down to their last olive" these days. As a consequence "you get a massive and permanent interest rate reset instead." Working off such a thing takes decades. "You don't even want to go there" as they say. Oaktree i think just opened a distressed debt fund. Of course Wall Street in their insanity laughed it all off as "a paltry 100 million." When Wall Street starts paying Oaktree 25% on that hundred million however...
Eurozone final collapse
Interestrate Italy, Spain deathzone
http://www.cds-info.com/
Failed corrupt regime desperation.
"The same EU which without Germany's funding agreement, is a faceless zombie."
chuckle :)
How is it possible that the European Union allows the weak states to enter the international money market and borrow the money they need without help – based on their own potentials? How is it possible that the “chain” of interests of euro can let its weak “links” exposed to outside pressures? How is it possible for a “herd” with common interests to let each “ship” defend itself against the wolves, without help, and its general security threatened? How is it possible for Greece, which represents a minor 3% of the Eurozone’s economy, to be allowed to threaten the other 97% of that economy, due to the latter’s weakness?
www.eamb-ydrohoos.blogspot.com/2010/02/ten-plagues-of-pharaoh.html
The European Union should be the one borrowing from the national banking system – thus dealing with profiteers itself based on its overall potential – not its weak “links” alone. The latter should be under the EU’s protection and constant monitoring. They should borrow from it at a subsequent time and if they became victims of profiteering, the problem should be kept in the bosom of the euro. Domestic profiteering should bring profits to Europe’s influentials, therefore bring profits in the euro area, and not threaten it.
From the Wall Street Crash of 1929 to the Global Financial Crisis of 2007
this is SPOT ON! In other words "you have ONE banking system"! Absolutely true! And of course "the USA bailed out Wall Street" because it recognized this "simple but stupid fact." Amazingly no one else on the planet has recognized this yet! "takes a LOT of political will" as they say.
I think we need too change the mindset that we NEED all these banks....I think 50% could fail and go away and the remaining 50% do 50% less business....and all would be good....we have to get away from the off balance sheet casino and back to reality.....but I do not make million dollar political pledges...so the bankers will steal it until it all falls apart ...where we could stop it now and a few people would get hurt...trust me...in the end we are ALL going to get hurt...
Is this what caused the futures to go vertical?
yes.
Not the end, just the beginning. More to come once Greece is out.
Spain Will Be Euro Exit No. 1
6 reasons Spain will leave the euro first
http://www.marketwatch.com/story/6-reasons-spain-will-leave-the-euro-first-2012-05-30
EURUSD jumped a tad, briefly. Very briefly.
Some relief from the continued EU Insanity :
Marc Faber on U.S. Equities, Economy, Euro Zone
http://www.youtube.com/watch?v=vev-m_4Ya0s&feature=g-u-rec
..."the EU Bureaucrats make the US Govt. look like geniuses"...
"The law, which could come into effect as early as 2014"
So let me get this straight, the markets are kneejerk reacting to a possible law which could come into effect in 2014? Nevermind one that Germany is unlikely to approve. What a complete farce. Not to mention, no one with half a brain believes the status quo can go on till 2014.
Look on the bright side, the longer this goes on, the more we can stack, go long gold /silver and short FIRE shares.......remember it more painful for them, than it is for us.
I personally think we need to convert some of these EU press statement videos in to black and white movies and add a honk tonk piano
Nothing constructive will happen as long as europhile/traitor Merkel (and most of the current German politicians) are in power. Right now, there's no organized anti-EU political party in Germany able to kick some butts...
I guess that commie Merkel liked the good old days of united europe under the USSR.
Merkel earlier in her life...
http://en.wikipedia.org/wiki/Angela_Merkel#Early_life
Later, at the Academy of Sciences, she became a member of the FDJ district board and secretary for "Agitprop" (Agitation and Propaganda).
That is sure useful today...
Chaos in europe and gold goes acutally down.....lol...does anybody need coins cos Im going to the shop ;-)
On behalf of my fellow German people: NEIN! Ain't gonna happen! Pay your own bills. Our butts already hurt like carzy!
cmon baby you know you want too ;-)
OK but can I call you daddy?
isn't that cute ... the german people still think they have a say in what deals their politicians cut ...
I love it when a central plan falls apart.
ha ha ha, What the ECB and Merkel say NEIN to, the Barosso gang say JA, JA to. Clearly there are two camps in EU; those for austerity à la Merkel and those for federation à la Hollande.
It is clear the banksta cabal in Europe, hocked to their jockstraps, and supported by the squid and US cabalista FED, have TWO power structrures that support their lobby : Super Mario (currently neutralised by Merkel and Bundesbank) and Barosso/ Van Rompuy combination representing the Commission and key mouthpiece for Bliderberger type logic. Van Rompuy is a weather vane who moves as the winds turn. Its clear that the critical Spanish/Italian bank run domino is Key to Banksta front. As, if these dominoes fall, its all over for international finance, with FED/USD hegemony instablility as potential resultant of fall-out. As the tsunami generated in Euro zone will be unstoppable. Its now tipping moment for the federalists and guardians of PAx Americana financial firewall in Europe. Merkel of course still the odd-frau out. She is defending Germany's future and is not willing to pay for the Euro zone bail out in toto, which is what this joint and several implies in five years time.
Awesome battle...Merkel daughter of Bismarck, as continuator of reunited Kohl Germany and Schroeder's Ost politik strategy or... conventional daughter of Adenaur, who bought into Pax Americana (he had to then)?
Nice try, along the lines of constant dripping will wear away a stone!