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Euro, Stocks Soar On FT Report EU "Looks To Swift Recap" Of European Banks
And right on cue, just like 2 weeks ago when the FT "broke" the news that China was about to bailout Europe (all over again), here they come again, reporting that the EU is "looking to [sic] swift recapitalzation of 16 banks." From the FT: :European officials look set to speed up plans to recapitalise the 16 banks that came close to failing last summer’s pan-EU stress tests as part of a co-ordinated effort to reassure the markets about the strength of the 27-nation bloc’s banking sector. A senior French official said the 16 banks regarded to be close to the threshold would now have to seek new funds immediately. Although there has been widespread speculation that French banks are seeking more capital, none is on the list. Other European officials said discussions were still under way. The move would affect mostly mid-tier banks. Seven are Spanish, two are from Germany, Greece and Portugal, and one each from Italy, Cyprus and Slovenia. The list includes Germany’s HSH Nordbank and Banco Popolare of Italy." And we are now taking bets on how long until this whole non-news, all rumor move is faded.
Update: We answer our own question: 30 minutes.

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half life of about 30 min.
not even that long. here comes the flush.
NetFlix the "safe haven" buy for today. :~)
ROBO cleaning up today, no doubt.
***This Is A Financial Times Breaking News Report***
Becky Quick reporting on assignment
***This Has Been A Financial Times Breaking News Report***
Nice 6 sigma, PPT event there a few minutes ago. Being followed up by desperate quote stuffing right now.
Nice pachinko machine.
didn't even need to see the news, price action gave it away. always happens when we're sliding to new lows...
fade. this. bullshit.
Fading it....and so will the HFT. They absolutely cinched a move lower now with the insane pump. They thew the kitchen sink at it...but it won't work.
Protecting the neckline of this H&S? Might work for this afternoon but could have a nasty gap down tomorrow.
Program selling on the close should set the inverse ETFs on fire...ensuring the breakdown of technical mumbo jumbo. That absolutely moronic pump has cleared the way and given the green light for short selling.
Just waiting for confirmation now.
Here it comes.
http://usequities.nyx.com/markets/nyse-equities/circuit-breakers
Curbs, bitchez.
So supposedly we jumped on "Euro banks will be recapitalized." There is nothing left to recapitalize. Faith in those institutions is gone.
You can cry wolf only so many times...and then the wolf shows up and does what wolves tend to do.
There again...another desperate quote stuffing effort. Volume response was pathetic.
Way to go criminal syndicate Wall Street bankers...and your computers. You've done it now. You have killed the market.
Nice ramp job on that rumor there, Ben.
Russel is now at a critical breakdown level. No one seems to be interested in saving it.
Hey Wall Street....bid lifting and quote stuffing is NOT an investment thesis.
Keep it up...just go ahead and finally kill it so that we can get on with the collapse and the following recovery.
eat 3 wolves
before breakfast...
baddest bear
on the iceberg..
But . . . will the EU recapitalize MS and GS? Afterall, our FED and Treas helped their banks with TARP, swap lines, and so much more.
Oh never mind. They don't intend to "help" those banks recapitalize. They just want the 16 that didn't perform well on their joke stress tests to go to the market and attempt to recapitalize. Sure, that's a great plan. They won't have any problem issuing more stock or bonds for their capital. hahahahah
fine new "grasping" avatar, Cdad! +++
now looking @ 1.3469 and heading south...
Yep, story about nextflix being bought by amazon.
And AOL is going to buy Google, Apple & Amazon.
Wasn't AOL bought out by Compuserve?
I thought Gateway bought all of the aforementioned players.
was that the company that bought out atari? man i loved pong
Coleco bought Atari, Sega, and Nintendo and then sold to 3DO (Panasonic). I think.
Financed by GE Capital?
It's now GE/Sino-Forest Offshore Capital, PLLC, lmtd.
Underwritten by the SBA and insured and CDS provided by AIG.
Which is backstopped by The African National Congress Insurance Fund® of Omaha™, LLC
And the Natiional Bank of Zimbabwe has THEIR back.
And Kim K. has the back of a Zimbabwean.
DX took a 36 pip hit--half of it is back already...
Dipshits.
Nice call!
I just BTFD bitchez!
and you're about ready to lose your ass... bitchez.
This is the same Scumbag paper that told us China was Bailing out Europe. LOL
Fool Me Once you can't fool me again.
To clarify, I added to my position in physical silver today. Yes, I have already lost 10% of my ass today.
check the ounces, let me know if its lost 10 pct in weight.
Yeah, the shit still takes up as much space, too.
Don't fight Organized Crime Bitchez!
must keep 1120
Dec 31, 2009 close: 1115
better to focus on the drama of the dow. that is what the average person looks at. huge drops of FOUR HUNDRED POINTS has a nice effect on the population.
I give it til about .........now.
This is the point where the rumors from hacks like The Financial Times are sell the news events to those who get the leak before the article is released.
This rumor should be enough to turn us green.
...with motion sickness maybe.
"Seriously, could we just stop with the bullshit?"
Quoting TD from the China rumor.
I would use any bounce to get the fuck out of this mess if you haven't already.
or improve your short positions....
half-life was less than the time it took me to write this post. damn.
Thank god we're saved....again.
Just saw this, coordinated media effort. DOW off the lows, fucking bullshit this is.
PS all financial media sites are getting fucking hammered. Laughable.
FT can be so patethic at times. Amazing...
Stocks 'soar' - ha ha ha... good one.
Stocks sore.
Ahahahaha. Funny. They will have to find a way not to label it as illegal state aid to private entities. Good luck.
I fat fingered... sorry folks
No mention of French banks. Work better on the rumour next time.
Goldman is desperate.
And just like that, big red bars. We're gonna be measuring these rallies in nanoseconds by next month.
Lots of calls, then they dump the rumour and HFT collects the cha-ching, and throws in some puts at the top of the spike in a millisecond.
Sucker's rally.
Yep, almost ruined my appetite. I had just sat down with a giant slice of pizza, short as fuck, waiting for the bottom to fall out of the SPX when I see a bar that eats up every cent of profit and then some in one fell swoop. And now, as we speak, there has been a complete retracement (and now pressing lows). That was good for literally 40 minutes worth of high, about the same as crack cocaine.
Not fade away..
.....and the markets spike up for a bit.....looks like they are retracing now......maybe they are getting a clue about all this bs jaw-jacking.
at least i was able to get out the bad positions, now i am in the clear so market can go down another 500 points..
feel much better
A bank recap will require funds from the State / Govt. bank. The ECB surely cannot take these equity stakes.
So. which countries are even capable of raising the money?
Which taxpayers will go along with more of this devaluing?
This announcement has the same value as the paper it is printed on. Not one Drachma more.
These 16 should be left for dead. They need plans for the ones that passed.
Reggie had a very good video presentation to ING on this point. He noted Japanese banks before their meltdown -- the Jap banks were the top 20 of global finance.
Now? All those top-tier Japanese banks went supernova because of overleverage and bad debt. You don't see them anywhere. Same fate will befall Eurozone banks, and likely most U.S. banks.
Half-life now 2 seconds.
I thought this was a European insolvency crisis not a banking crisis, although the banking crisis due to the sovereign is a nice garnishment.
Also incessant corruption and incompetance from leaders globally (Particularly Obama) Talk about Nero, it's not even funny how close they compare.
If you would stop misusing the word "leaders" you would recognize there is no incompetence, but instead, instilled ignorance that works as a protective shield.
Remember, these people are sociopaths, the lowest of the low. There is nothing incompetent in the manner that they feast upon the blood of our children. To call them incompetent is to provide them the cover to plunder yet another day.
Enjoying the copper short
Enjoying the cotton short
Looks at gold/silver on the couch
All Ben now needs is Tom and Val
http://www.youtube.com/watch?v=V8rZWw9HE7o
By the way folks, this is how profits are generated - scalps by investment banks throwing bogus rumours via the likes of FT. :)
Good work if you can get it.
Be careful, I'm sure there is another rumour in the breach.
Well thats some steroids right there.
How is GS gonna keep 1.35 in one hour and 20 minutes
And down she goes again . . . .
Love it. Time to wash Ponzi out of the system.
oh well I couldn't find a euro financial stock etf, but did buy financial today and the vanguard european etf. alas they didn't have a international financials. bit with funding pressure on euro libor at march 2009 lows I thought that was a good trade!!!
it is going to be very hard for the alogs to close above 1120 with a volume spike as today! I think FTs "line" was to get some buddies in on the cheap(er)! It mai hold until tomorrow but I belive we'll go into the weekend with the S&P well below 1120!
This re set will not take as long as many had thought, this "thing" will be over in less then 2 weeks! With the usual snap backs!
But will you be buying or waiting until next year for the "big one." Serious question.
No buying yet! This sucker will need to get a lot lower for that! Around 950-1000 i might tip one toe in the water! If you want to know what WS is going to "do" look no further then DC!
Man, this sort of currency manipulation should be illegal.
Oh, wait......
I just don't see how these 'good news' stories can be considered good news.
16 banks are basically pieces of shit, and they are goiing to be forced to fuck somebody up(taxpayers) to come up with cash.
This is good news?
Cash for banks is good news. For bankers.
umm...hoping for some trickle down there...
Keep your mouth closed.
TD's post just reinforces my point from the last post; viz. that these short-term battles are endless and will happen over and over again. They have unlimited funds, you don't. they don't give a shit if they lose; you should.
There are times to be long and short. There are also times to stand aside, waiting for these things to happen. This is what always makes markets.
Unbridled bullishness and/or bearishness in any market usually leads to losses by the masses. I'm sorry, but that is the truth.
You are almost there . . . to the point of understanding, but not quite.
They have infinite funds and you don't, but this doesn't mean you trade.
It means there is no market. The world you grew up in no longer exists and it never will again. You will never be rich. You will never progress.
It is all downhill from here for civilization forever. Your goal is to decline slower than others. Nothing less than that, but also nothing more.
I bet this rally will hold till 3.55 pm.
Matthew 7:15
*profits
(Or did you mean the FT?)
It's a good thing I listened to James Altucher...DOW 30,000!!!
Dow 36000: The New Strategy for Profiting for the Coming Rise in the Stock Market
By James K. Glassman & Kevin A. HassettI listened to them too! DOW 50,000,000,000!!!
*Shhhh...Barton Biggs is up soon gotta buy whatever he tells me to.
http://www.amazon.com/Dow-100-000-Fact-Fiction/dp/0735201374/ref=pd_sim_b1
"Dow 100,000: Fact or Fiction" ...just $ 1.88 (new), or $ 0.01 (used) !!!13 minutes 30 seconds, but i cheated, i just measured it on the chart
Or if you meant the duration before the market started to fade the rally, that was less than a minute - just long enough to follow the link and read past the headline
Robo has been missing these days, covering her shorts?
So a senior French official who was probably having a hard time going to sleep tonight just happened to call a FT reporter to deliver this breaking news. Wow, FT I thought you were better than this. Gillian, get a hold of these reporters and tell them they should refuse to be used as tools.
No surprise here...they always publish these fugazi pump pieces at critical support areas in the market. unreal. Next saving grace for this crooked, broken market - Tomorrow futs down -20 handles and Moody's will come out at 9am and reaffirm US and France AAA rating to save the day
Maniacal buying in TLT continues.
Same with VXX.
Odd, I was buying it last week.
more damning if it's true "as part of a co-ordinated effort to reassure the markets about the strength of the 27-nation bloc’s banking sector"
not sure how emergency capitalization is meant to reassure anyone of strength. those europeans are way behind the spin curve. in a statement like this much care is needed to communicate the proposed action.
i would've suggested - to reassure the markets that european banks are TBTF, the continent will back it's banks at all costs, don't fight the european coal and steel community, long live schuman, (gotta invoke an emotional response without hinting at panic)
buy the rumor fade the news
that said i'd give it another 33 minutes
the beauty of these desperate measures and leaks is that at this stage of game they only make matters worse when they are found out for what they really are: hopium air making some hot high-pitched noises as it rushes out of the shitbags ie global markets.
way to go. pump imaginary fiat into insolvent zombie banks built upon toxic sludge assets. keep it up postpone Teh Great Purge to make it all even more catastrophic. Yipeeeeeee biyatches yippppeeeeee!
PRISONERS OF THE EARTH COME OUT!
More debt to burden taxpayers with.
Seek and you shall..................not probably find.
Or maybe they can claim Gadaffi has left Libya for the 4th time or perhaps they can surround his apartment for a second time. Yuppers..all they have left is printing and rumors on top of rumors. Maybe the Fed will announce the next FOMC meeting will last 3 days this time to feign some sort of unprecedented action..surely it can buy a few weeks of stability even though the fundamentals on the global consumer is deteriorating as it has been.
This is the best they can do now that they have stolen 2 Trillion plus from savers over the past few years? What most be forcing them to shit their pants is that unlimited cash and record low rates are not even budging home prices and inevitably rates will have to go up meaning home prices down and the the U.S. will be paying insane interest on our debt. Ben is in a corner...he has to flirt with hyperinflation or accept deflation.
The cure is staring them in the face and it is surely not recapitalizing banks with tax payers sweat but nationalization and rewarding savers with high interest rates. Surely 3 plus years of Fed welfare to the banks is enough. This will end in Financial Nuremberg trials after the global war which is inevitable and it will begin once again in Europe.
Global War coming soon.... 2 to 4 years on the horizon.
and again, the news is timed to crash the confidence of the shorts. Well, that is a nasty game, politics can't win. As with the Fed, create expectations at the bottom, then start discussing it in a EUROPEAN way, doesn't work in the end. The longs that jump on such news will be disappointed and give up to only create an even bigger mess to the downside.
But it becomes more clear with every day, the political news machinery has adjusted to market timing. And they still think, that's a good idea. Poor politicians, will be guillotined by the masses!
Wonder how many algos have the parsed FT news included, SPY volume spike and volatility was just killing.
CNBC - "Quick, focus on HP getting a new CEO for an hour straight as the market crashes"
that's sustainable journalism :-D Not going for the quick crash, rather warm up Hurd's private diners, Apotherker's history and the structure of the incompetent HP board. That's just soo important to know.
Nobody is buying silver and gold today. Only paper Treasury certificates and U.S. Fiatsco dollars are in demand today.
I did.
Me too.
youre right robo, im quite sure china has decided to halt all purchases of physical gold as it becomes more attractive. and im sure no other entity/individual is buying. central banks are more likely buying chipolte today
I JUST DID. BTFD..!
Oh, plenty are, I'm sure. They're just doing it in person and with cash.
buck up buddy. your exact words were: ben bernanke is the best fed chairman in history. they'll be writing about him for the next 100 years in the history books.
btw: still "itching to get short"? oh i remember. after saying for months you would get short below 1200 spoos you ....... doubled down long with more djia stocks.
oh well. using your exact words: "trading is easy."
blue horseshoe needs a bid...
My butt hurts.
Stay outta Robo's basement.
my guess was pretty accurate, any prize tyler?? haha
One hour to go, someone else earlier on Zhedge said 500 pts down today. They may well be right.
Here's a laugh. I can't get my wife away from CNBS which she stumbles upon. Thinks we should think about getting out of the maket. The laugh is that we're in FAZ and DZZ,
hang on to your hats and fasten your seat belts. the 3pm spelunking is about to commence. anyone with heart condition and still holding long positions is advised to seek medical attention IMMEDIATELY.
"Soar" .... come on .... stop sensationalizing every blip.
S&P 650 HERE WE COME,..!
Let us have a moment of silence for BAC as it passes into the 5's within the next hour. I am sure Warren is standing by ready to pledge NetJets as as collateral to extend even more cash to keep BAC alive for the upcoming week. Have a Cherry Coke and a smile you criminal.
This will be Warren Buffett's second bath relating to BAC in two weeks.
BAC is almost there......cumon, baby!
Off Topic : Kudos to RM and WB7 for their contribution to Max Keiser interview; I enjoyed it. I hope all of Zh did. Hail to our princes of ZH!
BAC is gonna break 6
Tylers:
I fucking love this post. Thank you. Comments are so spot-on.
Now let's see how toasty this bitch gets into the final hour.
Total retrace time = 45 minutes.
Mission accomplished.
So do you think FT just has a collection of recycled stories ready to go? It's a little funny to think that they automatically trigger the release of these stories based on price action.
Speaking of which, we're at 1120 again so get ready for another "breaking story" from FT!
The tradeable bottom is nearly here.
I heard it from a YAHOO
OT...but what is up with the Aussie today. Down 2% againt the sterling and Euro, more than 3% against the dollar and yen. Is their housing bubble bursting or what?
But but but, Salgado has been telling us all along that spain has the best banking sector in Europe. To me that alone is a reason to be bearish on spanish banks but IF u choose to look at the banks and the reality they face how can you not be bearish on them. The "markets" are pricing something that has nothing what so ever to do with reality. Let's take covered bonds for example. Most of the covereds are backed by a pool of mortgages on houses. Most of the covereds are rated AAA because of the additional "security" the cover pool is supposed to offer to investors. Covereds used to be considered more like "rates product" than "credit product". Noone cared abt the quality or characteristics of the pool not to mention transparency on it. Just that the pool was there was enough for most investors. Well, things do change and while old habits die hard at least some people are recognising that. The beating on french banks have finally started to make it's way into french covered bonds. Spreads have widened massively in the past few weeks even though the french gubbmint "uncle gorilla notes" have been advancing. (though the spread vs bunds have widened). French housing market is a huge bubble but it has not bursted. Yet. And labor market is still ok. So probably there is sufficient cashflows in the pool. What abt Spain then? Most of the mortgage lending during the bubble decade was done by the local savings banks, cajas. Massive bubble was built, mortgage lending soared, massive amount of houses were built etc. Then came the bust and it's not even near ending. Unemployment soared and stands at 21%. House prices have come down but it's nothing even close to the numbers in Ireland for example. Unsold stock of houses is somewhere between 1 and 1.5 million. So common sense tells that something is VERY rotten there. Yet the spanish covered bonds have not reacted even to the huge swings in the sovereign bonds. In fact many of the single issuer covereds have seen their yiels creeping down slowly but surely. Even the latest statistics by Bank of Spain on non-performing loans didn't make the market move. I can't find a single reason why. None. Just to remind you, the banks have made roughly a trillion euros in loans to non-financial corps in Spain. Out of that over 40% is to developers and construction companies. Among those two sectors NPL's have soared close to 20% out of the total loans! And those are according to the OFFICIAL stats. I bet the REALITY is something different...
Who are the main holders of that Spanish BS? I have been wondering for some time, but does anyone have an idea, of it is all still with the Cajas or passed along the food chain?
This is one wild - assed mess. As I promised, here's the sequel to "War Of The Money Worlds". Don't look to these guys for answers. They're feeling the boat rock, along with everybody else. I had an interesting time writing it, watching them reach for answers. They shouldn't feel like the Lone Strangers. We're all out here, too.
http://georgesblogforum.wordpress.com/2011/09/22/war-of-the-money-worlds-update-09222011/
What the central banks want they get. The debatable issue here is as BK so aptly said :...The markets and central banks are at loggerheads...
His bet was that the market always wins as central banks have leaden feet and thick headed crony thinking as in 1991 and the run on Sterling. Lets see if the central banks know how to step up and dance the currency war fandango to match the market moves. After all, they make the rules...if their political leaders will let them. Whose side are the Oligarchs on...their market Dr Jekyl's or their Central bank Mr Hyde's?
Don't get your tits caught in the fan... is all I can say to their spouses....as they run around from charity funds to political fund raising ra-ra rallys. Mad hatter Oligarchs and their 'softer than velvet touch' wives.
Just thought I'd post this video of our UK independance party in the EU.... watched this this morning funny as...
http://www.youtube.com/watch?v=Bqxnb3y3h6I
Who can actually get silver / gold for spot BTW?
The FT is dis-credited further at http://www.telegraph.co.uk/finance/comment/8780075/The-great-euro-swindl...
Explains it all doesn't it? I had some respect for Gillian Tett but I fear I will lose that if she stays with this paper. The Telegraph with AEP is the best.
Say something anything to get the stocks back up. TURN THE MACHINES BACK ON. It's getting harder and harder to keep this game going, and usually that signals an end.