Euro Rumormill Disintegration Begins As Reality Returns: France, Germany Fail To Reach Agreement On EFSF
In our previous post we warned, indirectly through the IMF, that the biggest risk for Europe is the inability to reach consensus over anything from the most complicated, to the simplest matter. As noted previously, one of the main initial drivers of the market surge which has since translated into yet another short covering rally of epic proportions was the belief that Europe can actually come together in agreement over the simplest thing - like its own survival. Alas, it appears even that is not the case. As Bloomberg reports, "Germany and France are at odds over whether the European Financial Stability Facility should have limits on government bond purchases, Handelsblatt reported, citing an unidentified high-ranking European Union diplomat. France doesn’t want to restrict the EFSF on how much of its funds it can use for such purchases, the newspaper said in a preview of an article to appear in tomorrow’s edition. Germany wants to limit the amount EFSF can spend for bonds per country and is also considering whether there should be a time limit for bond purchases, Handelsblatt said." Said otherwise, here comes the latest cause of discord within Europe. Unfortunately, it also means that any rumor, innuendo and speculation that Europe has finally reached a coherent union over its own bailout can be promptly discarded. As if there was ever any doubt in the first place.
From Handelsblatt:
In Berlin and Paris argue about EFSF
Exclusive The euro rescue package to buy bonds from future debts States. But with how much money? France wants to give the fund a free hand - for the rescue could not stay no longer enough to fear Germany.
Brussels is a dispute between Germany and France erupted over the extent to which the euro rescue fund future EFSF may buy government bonds. France wanted to make the EFSF this respect no rules, told the Handelsblatt by a senior EU diplomat. This would theoretically mean that the EFSF could not use its entire volume of funding expended to buy bonds of a single Euro-state.
EFSF has a total of 440 billion euros, has been a part of it, however, scheduled for the loan packages to Ireland and Portugal. The federal government wants to limit the amount used for bond purchases per euro government, it said in Brussels. Think Germany will also share in a time limit on bond purchases.
The purchase of government bonds is one of three new instruments may have on the future of advanced EFSF. The design of these new instruments will be governed by guidelines to deal with the high officials of the euro finance ministers in Brussels at present. The guidelines must then be approved by the Budget Committee of the Bundestag. The German Parliament has made this a condition for agreeing to extended EFSF.
Cue the FT, Liesman, and/or some IMF guy we have never heard of with attempts to deny what is painfully obvious: Europe will never reach a consensus because the ultimate price of a European bailout is the absolutely certain suicide of the currently ruling political class. Alas, none of those bureaucrats wants to (or can) do anything else but "rule"...
And if the IMF advisor is right, Europe has less than a month to prove us wrong.
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Rumor alert:
Europe will be the 51st state of the United States of Cramerica.
It's been just that since the mid-40s.
+1...
Don't forget Japan and Korea... We shipped our industry overseas after WWII to buy friends at our expense...
Problem is the latest generation doesn't know anything different. They realize that they don't need to slave for us for saving them after the war. What are we bringing to the table now?
oh cool! i love asian women!
"because the ultimate price of a European bailout is the absolutely certain suicide of the currently ruling political class. "
Sweet!
We shipped our industry overseas so that we could buy their goods with money we borrowed from them.
Buy hey. It's an improvement. Using credit cards is so much easier than working.
how is Portugal part of europe anyways?
Ever look at a map? Used to be part of Andorra, I bet.
And that was a protectorate of Monaco, at one time, before Malta conquered it.
no taxes in monaco i hear. that sounds so nice..
It's nice here in Hong Kong.
Monaco
cup of coffee. =. $30.00 and up
Nice
cup of coffee. =. starting at $25.00
No, but try to live on a non-millionaire salary there
I keep tellin' folks there are problems with Arkansas schools.
The 58th, silly.
http://www.youtube.com/watch?v=EpGH02DtIws
61, you, like many others, don't listen.
"been in 57 states, with 1 left to go. Wasn't allowed by my staff to go to AK and HI"
Tried an inhalator yet?
What a moron that Kenyan is.
And to you ODummer supporters out there, this is a response to the response to the quip about..damn, confused them....
Cr... Cram... Cram-mogadishu...
If I were a pepper spray company, I would've switched to charging the Maze cans with Cramer's stench.
Here's the TV ad - "One gentle push on the Red Button and... your assailant, his family, friends, YOUR family and friends, neighbors, enemies, and the enemies' dogs are screwed beyond repair".
P.S. I wear fur (my first dog's) AND I approve this message!
Looney ;-)
Just paving the way for the inevitable IMF bonds.
yeah, funded with US dollars.
None of this is surprising me.
Europe doesn't want to print, is it not obvious yet ? And don't worry, that doesn't mean gold will go down. Just the opposite actually.
http://freegoldobserver.blogspot.com/
The ECB will not print to bail out the PIIGS. They are saving their firepower to resque France and Germany when the time comes in about six months to a year. But in the end they will print. And then some.
Germany is planning an exit. France wants Germany in a leverage EFSF, so it doesn't end up holding the bag, and there's a mutual assured destruction, to check its regional power rival, if the CDO2 ends up imploding.
Germany already has an exit message: The bond purchasing by the ECB contravenes article 123 of the Maastriche Treaty. And Germany will not accept...
gasp...
Jesus just collapse already Im getting bored
Why do you want Jesus to collapse? He doesn't want no stinking bonds either
Who is Jesus?
He's a Puerto Rican trader working at GS.
So the bailout needs a bailout.
Owwwwwe, that'll be good for another 2% rally tomorrow in Bizarro World.
Just in time to screw with the overnites....big surprise.
To be refuted around 7:30am EST, no doubt.
Gotta have sumptin' to ridicule.
this is getting HILARIOUS.....
Why this is not reflectd in the AH market.
Cuz it's closed?
All trading has been halted until the rumor/hopium/green shoots still can be fired up again at 8 am tomorrow to coincide with the HFT machines hitting their own offers every nanosecond like clockwork
During this halt, the HFT machines are being juiced with the binary equivalent of coke, hookers, and jimsonweed.
Whatever! The french and the germans always play nice together - I mean other than the Napoleanic wars, WWI, WWII, and a few other minor conflicts they get along fine.
Nothing to worry about folks ... right?
that makes me feel warm and fuzzy inside, esp knowing that MY TAXDOLLARS were robbed by my government for the benefit of the "best and the brightest" of our country at Morgan Stanley and Goldman Sachs- both whom exposed themselves ON MY TAX DOLLARS to French banks (SG, Dexia and BNP Paribas).
Before the NYSE merged with the German bank exchange.
I'm not so sure about this hedging strategy. I prefer the Asia-Pacific rim, Argentina or maybe a tax haven like our lobbyists.
1871 Franco Prussian wasn't minor and should be listed.
"unidentified high-ranking European Union diplomat"
Wish that fat pig, Michael Moore, would die of a pie overdose.
"Pass this bill!"
ditto for rush limburger
Actually not, you stupid f^^k. Limbaugh reads this site, references it on air, and occasionally learns something from it. Michael Moore? Busy studying the Communist Manifesto for New Ideas.
i don't care what your political persuasion is but anyone who takes a crack addict like rush limbaugh seriously should get their heads examined. michael moore? well, he's just a socialist who got rich playing the capitalist game.
Oh I am tired of these jokers. Let them fight in some remote desert arena. I'd pay to see that. But no survivors. Next: Krugman vs. Coulter.
Hey - all I am saying - no left/right bullshit. There is a common ground for both sides. Sheesh - I hope you don't do something stupid like another civil war or something like that.
THUNDERDOME! 2 go in... 1 comes out.
Coulter would kick Krugman's ass.
check this out:
http://www.youtube.com/watch?v=skl-I_Md8DM&feature=related
double post, really? need to get check for parkinsons
wow, a bold comment. heh heh
Hey Rush, suck my ballz.
http://www.youtube.com/watch?v=LhuKrga3eaU&feature=related
Limburgher = fat, greasy, drug addled, ass muncher retard
actually CompassionateFascist, you can have a lick too since you and limburgher are butt buddies.
Would you say that's your Compassionate side, or...?
he is in touch with his latent repressed homosexual rage. lulz
http://www.youtube.com/watch?v=H8laacH9AEA
edit: after some research it appears that CF bolds all his comments. For example:
Almost everyone on this site looks at the oncoming economic collapse....but the political system is also core-rotten and nearing collapse. Put the two together and you get the Thing Which Has Yet To Be Named. TSA? Both the upper echelon Oinks (Bankers, plutocrats, politicians) and lower echelon Oinks (TSA, public employee unionists, urban libs...those currently "occupying Wall St") are going to be hunted to extinction.
Now what would his buddy Rush think of that? BREEHEEHEE!!
edit #2: CF wrote: End the Fed. Liquidate the banksters. Break the Zionist/Communist JewPower.
OMG!! Mi Hermano! Fantastico! Goy power! GIVE US A KISS! :*)
Even better, a house falling from the sky on Ann Colter while engaged in a retard argument (shouting contest) with Michael More, mashing them both into a paste.
WAIT - this just in...France has voted to discontinue the French language, baguettes, and the Tour de France...all further details regarding these triffling matters will be communicated via Frankfurt, Berlin, and the high atop Berchtesgaden.
Wait...sorry, that's tomorrow's rumor...today's rumor tbd asap...definitely gonna be bullish though!!!
Whew! Scared me; like baguettes.
or choke on a sanwhich like his fat sister momma cass.
Just think: If Mama Cass had just given her sandwich to Karen Carpenter, they'd both be alive today.
+1 lb of ham
Keith Moon died in the same room as Mama Kass, choked too, i think.
Off subject but HMMMM.
Hell has frozen over. The French refuse to surrender to the Germans.
Just give them time. Merkel hasn't tried to buy a flat in Paris yet.
Not the first time the Germans owned the Eiffel Tower, next time maybe from a Repo.
I don't think we will own it. Let's face it: Reggie will own it.
Can he short Carlyle Group ? :-P
Should I buy more Google and Apple yet or not? That's all I want to know.
No, PCLN is the one. Maybe GM.
Too late for ZUMZ.
PCLN already had a jump this week. Wait for the dip.
No those are so 2010, Take a look at P, LNKD, and OPEN... solid business models and very undervalued after this correction.
Go long on TARD.
FK TARD
I love the way the talking heads keep saying Apple has the most sales per sqft. than any other retailer, by far... Total revenue per sqft retail is my guess. Apple's revenue is net based... Good revenue, but I haven't bought many Apps or music at the mall lately.
DOW 10,000 next.
dam, where's my 9K hat?
Controlled defaults are out of the window now. Chaos inbound.
They are going to shoot their wad and all they are going to get is ... Zombie banksters.
No ... not you Main Street. No bailout for you. Peons.
Who cares what tax payers think.
You know ... I've got a pitchfork in my garden.
Pitchforks and garden forks are useful and versatile tools.
Helpful hint: when given a choice, always go with forged steel; you'll be glad you did.
42th rumor falls on its face. They will unleash another one tomorrow after the shitstorm NFP number....just in time for the 12:00 ramp.
But judging by the "Occupy Wall Street" momentum, not a single soul alive believes the DOW is a proxy for the real economy anymore, and rightly so.
NFP will be....ummmm...whiskey....I see it now! 71,000K!
So sez Oracle Jones.
.....Chivas Scotch/Whiskey in hand: ZERO.
+110 K .... revised lower next month, when we're back to 1200- 1250 on the S&P
As real as "The Markets", which work in ON/OFF Mode.
Morons have momentum? Oh, never mind, look at the WH.
NOW we can insert mushroom cloud pictures. The longs are about to get a long one again....
Only the overnite longs. Robo told me so.
Wonder id France learned it lesson and didn't cement it's ICBMs in place
I am not familiar with that French pastry, would you please expound further?
Fool me once, shame on you. Fool me twice, .... huh ... shame on... huh... shame.
i dont see any movement from the markets on this
"suspension of belief"
though the Stinko has heartburn....
Can't wait to see how Germany feels about 5pct 10yr yields. Just like Goodfellas. Need to guarantee the banks. Fk u pay me. Need to guarantee Portugal. Fk u pay me.....I see the train a comin', comin' round the bend....
"KNIRSCH!*"
* mit den Zähnen knirschen; to gnash one's teeth
Bundesbank became a world champ in that sport.
I mean really. Who cares which or how many of whatthefuck ever bonds they're gonna buy, whether they're money good or not, even rated or not (like it matters whether they are or not because nobody's gonna pay any attention) however long they can or cannot purchase bond for, issued by whom, through whom, payable in what monetary unit, by which means, for what settlement, whether there'll be a w/i market or not, how many, who, from what countries, will they be recognized or not, and of even what nationality, race, color, gender, creed that will be allowed to participate as dealer, manager, broker, custodian, trustee, counter-party, wire-transfer agent, printer, newspaper of record or newspapers, in what language or languages and which shall be listed first, last or otherwise, who or what groups will be heralded for translation services, catering, driving, security, where the next meeting shall be held, what terms and conditions are for repayment of expenses, per diem allowances, sundry monies and free charges, exemption from trivial search and seizures, diplomatic immunity, and segregated toilets.
Not to mention whether wives, boy friends, girl friends, significant others cousins, brothers, sisters, moms, dads and any other assoicated person or persons by virtue of marriage (common, formal whether civil or in a church, temple, mosqe or other form of spiritual guidance entity) or blood may attend, partially attend, accompany or even be present whether for casual exchanges, sightseeing, sex, funky extreme sex, perverted sex, fetish oriented group sex or whatever the case may be, public or private, whether it is acceptable to consume drugs and alcohol on ones own time, business time or any other specified times, where to eat and stay, as well as allowances for new shoes due to the wear and tear associated with cultural absorption when away from home done for the full and exclusive benefit of the further integration of the EU, EMU, EFTA, as wll as any and all other Eu related organizations, committees, concerns, collectives and responsibilities known or unknown approved or unapproved, to be decided within the auspices of each yet to be named delegates good conscience.
Now, does anybody really fucking think there is a chance in hell that there will be a good, happy, constructive, reasonable outcome of all this chickenshit?
Of course there will; I have hotels on Boardwalk and Park Place, so roll, dammit!