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Euro And Futures Slide As Schaeuble Admits Germany Faces Potential Further Costs From Greece Fallout
EURUSD and US equity futures slid lower this evening as late day exuberance leaked away. This was then accelerated briefly by comments from Germany's FinMin Schaeuble in a German newspaper that Germany faces additional costs should Greece go bankrupt or bondholders face a larger write-down on GGBs. Bloomberg notes the comments suggest additional costs potentially amounting to billions stemming from losses at WestLB and Hypo RE. While this seems like a 'worse-not-worst' case scenario concern, it does suggest that even the venerable Germans do not see the EU Summit (10/26) solution as the endgame in the charade of European sovereign debt and politics.
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Wait,... more toxic assets discovered by a Euro Zone member? Color me shocked.
But aren't the North American markets were decoupling from the Eurozone markets.
I mean if the worlds largest joint economy goes into recession it stands to reason that the USA will remain unscathed.
I see another 100 S&P points into year end. After all career risk is as good a reason as any of the other bull shit green shoots i have heard about over the last 2 years.
Seriously, Bloomberg used the Stark quote "EU crisis will be resolved in 2 years" as a reason market rallied to day.
That was as lame an excuse as i've ever seen.
Not to mention, thousands of fund managers must have collectively hit buy at the same time in realization no?
That BS spike was so blatant its almost bizzare.
It almost seems like someone is dicking around with the headlines to F with the algos.
This cant end well.
You saw it Lizzy...and so did I. It was a weak, straight up, low volume ETF driven piece of crap rally...that made for complete unanimity on the BlowHorn [CNBC] front for a continuation of bullishness, folk there "feeling much better about the market" because of it. And indeed...because "the Greek debt crisis will be solved in two years."
Complete and utter nonsense.
Would someone just go down to Wall and Broad...and just turn a fire hose on the place? I would really appreciate it, as would a grateful nation.
He thinks the crisis will be controlled or even over in one or two years. But Stark also notes that he doesn't know if politics with every time bigger bailouts is the key for overcoming the turbulences, because they strain those countries who are still in a pretty solid shape.
To me it sounds like he wishes that the piigs leave the Euro zone.
Stark unexpectedly resigned from his ECB position as a chief economist earlier this year. It is said that he disagrees with government bond buying by the ECB.
"While this seems like a 'worse-not-worst' case scenario concern,"
Then do tell...........what is the worst case scenerio.
having to repeat puberty?
If I had to repeat puberty I hope it's with Miss Anderson in 8th grade again.
Marine Le Pen for President!
that is already in the cards.
the part of her biography that surprised me is she defended illegal immigrants as a young lawyer.
She also said, "let the euro die its natural death", which would not be good for Germany.
gahhhgghhh!
another finiMini!
Merkelicious!!!
Athens News: A whopping 1.5 billion euros was withdrawn from Greek bank accounts in the four days after Prime Minister George Papandreou announced his doomed referendum plan late on October 31.
Just kill it already.
Pappydocious!!!
George Pappydopolis.
wonder what they did with that money... precious metals perhaps?
How do you kill a corpse?
buy priceline.
priceless.. (NOT!!)
Please alert me when the inevitable global Great Purge arrives; ie SP850 and my interest shall be piqued.
Holy shit, an optimist!
I think you're being overly optimistic.
I'm afraid SPXXX would be very late in pricing the "global Great Purge" that you would miss it. By then your interest will already pick up.
Don't be too afraid. It will be priced in. Thank me now or thank me later.
S&P850 ? You're pretty generous. I'm thinking S&P 400 when this shiy breaks.
Should be good for a 30 point ES spike tomorrow,or maybe 40?
(to the upside as usual)
from wires:
-- Swiss franc weakens over possible change to target
No competitive devaluation is being implemented, move along...
Edit: for reader's sake: sarcasm!
losses at hypo? isn't that where they found 55 billion last week?
yeah. makes one doubt all the financial sector accounting world wide is completely on the level.
should Greece go bankrupt or bondholders face a larger write-down on GGBs.
A larger? What about 100% loss?
So much for democracy in Europe the banksters are using bribes and extortion to replace the government , we know how this ends . On a side note last week a man from Bellingham Washington showed up at the emergency room with his arm detached . He was testing a guillotien.
So the Fed just absorbs another $2 trillion onto its balance sheet.
Bullish.
It's better than $3 trillion and just a little worse than $1 trillion.
http://policyandmore.blogspot.com/2011/11/leaders-songs.html
http://policyandmore.blogspot.com/2011/11/leaders-songs.html
EUR/USD just went green. CAC on fire. U.S. markets will go green tomorrow. According to Greenblatt, U.S. equitites are in their 95th percentile for cheapness based on trailing 12 month free cash flow; Buffett is buying equities and non-financials like HE hasn't for over thirty years.....
And ZH is going to steer thousands to Gold. Don't let the hatefest for everything equity here turn you away from some truly spectacular gains.....
Just sayin'. If your "trade" based on ZH stuff you're going to have your ass handed to you.
@ Belarus...cannot discount your analysis. This market does feel totally bulled up. But I will maintain a long gold/short equity position. In the old days, I might be called a hedge fund!
medium to long term, that is one stupid trade in all due respect. It's clear as a pane of glass, the govt. will do everything and anything to prop stocks up. This will include outlawing Gold yet again if they have to. The DOW going green, nothing else matters to them.
With stocks, you have machines and valuation and govt. policy on your side. Don't get me wrong, I own Gold. I'm just sayin', don't let your love of hating all equities fog your brain. A lot of people here willl tell you to even stay away from metal stocks. That is utter non-sense. No one is ever going to lose their brokerage accts or bank accounts in an all financial systemic melt-down. We already saw this in 08/09; and the despots will do anything and everything including illegal shit to keep the system afloat.
You have too much working against you as a ZH faithful stock basher.
"No one is ever going to lose their brokerage accts or bank accounts in an all financial systemic melt-down. We already saw this in 08/09....."
Ya, just like CDS holders on Greek 'no-default' bonds, right? Or like GM bondholders, right? Or MF Global account holders, right? Or like Bear Stearns, Lehman Bros shareholders, right? I mean folks like Cramer gave everyone a heads up before that shit happened, right?
Btw, what happened in 08/09 wasn't a financial systemic melt-down. It was a precursor to one which has yet to happen, and it will.
The pooch has not only been screwed, its been gang molested. And the system that you're referring to as being 'afloat' is akin to turds floating as flotsam in a punch bowl of psuedo posterity.
"the despots will do anything and everything including illegal shit to keep the system afloat"
Incorrect.
The despots will do anything and everything to protect their own interests. If and when they see that equity markets can't be propped up, the elite will abandon equity markets and leave dumb money holding the bag. According to Michael Lewis, the seriously wealthy already doing this, buying art, collectibles, gold, productive farmland with water rights.
But you go right ahead and hold the bag, thou good and faithful servant.
I've heard similar things back in Aug 2008.. good thing you're wrong eventually.
And scene: EUR/USD and ES Futures Ramp while European Markets on Fire. Think you'll ever see that headline here? No. You will not.
Italy to sell some of its Gold reserves.
.
Keyword: CHARADE