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Is The Euro Summit Already A Failure Following An Early EcoFin Meeting Cancellation?

Tyler Durden's picture




 

The European farce descends into surrealism and gortesque tragicomedy. Just out of the FT's Brussels Blog which discussed what appears to be an early cancellation of the critical EcoFin (not to be confused with Euro Coffin) meeting: "A letter sent last night by Jacek Rostowski, the Polish finance minister, makes an [EcoFin meeting doubtful]. Since Poland currently holds the European Union’s rotating presidency, Rostowski is charged with convening a meeting of all 27 EU finance ministers tomorrow ahead of the big summit to lay the groundwork for a final agreement. But officials tell Brussels Blog the so-called “Ecofin” council meeting is now likely off, and in a letter to Jean-Claude Juncker, the Luxembourg prime minister who chairs the group of 17 eurozone finance ministers, Rostowski makes it appear the cancellation is due to a failure to agree on outstanding issues." No.... they couldn't agree??? Nobody could have possibly foreseen this. Nobody.

Here is Rostowsky's letter:

As things stand at present, I understand that the full package may not be ready by Wednesday, 26 October. Were this the case, the presidency would need to postpone the Ecofin council meeting by a day or two. Therefore I would like to ask you to keep me informed on when the remaining elements of the package will be completed by the Eurogroup so that I can convene the Ecofin meeting as promptly as possible.

And more from the FT:

An Ecofin council meeting ahead of the summit is specifically called for in the conclusions of Sunday’s summit, which say Ecofin must “finalise this work” on a bank recapitalisation plan before the Wednesday gathering.

 

Other officials told Brussels Blog that there is a growing belief that any meeting of Ecofin or Mr Juncker’s eurogroup is superfluous, since heads of government will have to make all the major decisions Wednesday night anyway. But cancelling meetings of finance ministers ahead of time may not augur well for what’s to come.

What this means is that as we get closer with each day to a "free fall" Greek bankruptcy, the only weapon left for the global central bankers will be the bazooka option: namely wanton, gratuitous printing of money, Weimar republic flashbacks be damned. Which is why, for once, Gartman's bullish sentiment on gold may actually not be a contrarian indicator...

 

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Tue, 10/25/2011 - 08:47 | 1807628 Fips_OnTheSpot
Fips_OnTheSpot's picture

Agreement is overrated

Tue, 10/25/2011 - 08:54 | 1807647 HelluvaEngineer
HelluvaEngineer's picture

Success.  Failure.  It matters not.  Stawks go up.  Even NFLX.

Tue, 10/25/2011 - 09:00 | 1807670 slaughterer
slaughterer's picture

NFLX is an anticipatory indicator for global markets on Thursday morning. 

Tue, 10/25/2011 - 09:30 | 1807766 Use of Weapons
Use of Weapons's picture

NFLX is about to launch in the UK, where the remaining part of Blockbusters still works as a model.

I suspect a few people are betting on the same bloodbath for Blockbuster happening over the ocean, and it'll rise - people shouldn't forget, however, that most non-urban places are still only on 3-6 megs / sec  if they're lucky, and bandwidth caps in the UK are not very generous, esp. for the 'cats & grannies' demographic.1

  • 1. In fact, with the retail model that runs in the UK, I suspect Netflix owners of the stupider variety will hit a wall of pain when they see their ISP's demands for the extra bandwidth costs after their first month's subscription splurge. But that's a different story
Tue, 10/25/2011 - 09:33 | 1807780 chubbar
chubbar's picture

OT, but anyone here interested in what Obama stuck in the "jobs bill"?

http://ppjg.wordpress.com/2011/10/23/18485/

"Hidden in that worthless jobs bill was the Border Perimeter and Security Act between the US and Canada. As I understand it, US and Canadian troops will be (are being) stationed along both sides of the border with Canada to make sure no terrorists (you) or criminals (you) slip across that border in either direction without the government knowing it and identifying you biometrically . This Act was actually the crux of the “jobs” bill; a bill constructed and used as a front to cover up and to pass quietly what is another assault on the public by government and to further the global intent to identify absolutely every citizen on the planet and to hold that identity information in a global data bank accessible by virtually any agency of any government in the world in real time.

WASHINGTON — Prime Minister Stephen Harper and U.S. President Barack Obama are seeking a sweeping deal to establish a North American security and trade perimeter, opening talks Friday that could lead to jointly operated Canada-U.S. border facilities, an integrated entry-exit system to track travelers and the deployment of “cross-designated” law enforcement officers to intercept terrorists and criminals.

This so-called security act will require biometric identification of all you tourists and business travelers (suspected terrorists) from each respective country. This will be especially helpful in furthering the efforts to establish a global identity system and coercing individuals into submitting biometric information in order to travel.

The Canada and U.S. governments plan to put in place “common technical standards for the collection, transmission and matching of biometrics” to screen travellers in real time.”

This would be in addition to the FBI’s intent to build a massive identification system reported by EPIC.org :

FBI Seeks to Build Massive Identification System. The Federal Bureau of Investigation awarded a $1B, 10-year contract to design, develop, document, integrate, test, and deploy the Next Generation Identification (NGI) System to Lockheed Martin. This new database will expand on the current fingerprint-based system; the FBI will increase its collection and storage not only fingerprints but also iris scans, palm prints and facial images. The FBI is also in talks with the U.K. police to establish a unified database for the tracking of this biometric information. The U,K. has said that the new NGI System could easily be integrated with the U.K.’s current Ident1 database. Critics have highlighted the problems created by such massive system that would share data, including inaccurate or fake information. (Feb. 14"

Yeah, let's concentrate on the Canadian Border where NOTHING is happening and ignore the fucking drug war, killing of border agents, gun running (by our gov't) and millions of illegals streaming over the Mexican Border. Can this get any more blatant???

Tue, 10/25/2011 - 08:49 | 1807629 gojam
gojam's picture
Is The Euro Summit Already A Failure Following An Early EcoFin Meeting Cancellation?

 

YES!

Tue, 10/25/2011 - 08:51 | 1807639 breezer1
breezer1's picture

so, we all agree then.

Tue, 10/25/2011 - 08:57 | 1807663 gojam
gojam's picture

Yep, so let's talk about something else.

You got the family around this Christmas?

Tue, 10/25/2011 - 09:02 | 1807678 Tsar Pointless
Tsar Pointless's picture

My partner and I are going to put up a tree this year in the dining room, right by the big window.

I also want a menorah.

Perhaps even something Kwanzaa related, just for shits and giggles.

Inclusivity, bitchez!

Tue, 10/25/2011 - 09:08 | 1807700 gojam
gojam's picture

Isn't it traditional to smoke a huge joint to celebrate Kwanzaa ?

Tue, 10/25/2011 - 09:19 | 1807739 HITMAN56
HITMAN56's picture

more like X-mas Blunt

Tue, 10/25/2011 - 08:54 | 1807641 zilverreiger
zilverreiger's picture

Same in italy , Berlusconi government is about to collapse.

And in Germany the parliament has to vote again over the new eurodeal tomorrow morning.

Greek debt will be cut by 60% as a present.

http://www.spiegel.de/politik/ausland/0,1518,793879,00.html

Tue, 10/25/2011 - 11:16 | 1808345 Schmuck Raker
Schmuck Raker's picture

Slovakia should be interesting...AGAIN.

Tue, 10/25/2011 - 08:51 | 1807642 qussl3
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Must be the end of the world when a Tyler agrees with the Gartman.

 

Tue, 10/25/2011 - 08:54 | 1807644 LawsofPhysics
LawsofPhysics's picture

As common sense seems to be a rarity these days, I have to agree, this was completely unforseen.

 

Oh yes, and the markets will rally, for no apparent reason.

Tue, 10/25/2011 - 08:54 | 1807645 slaughterer
slaughterer's picture

I said over last weekend: the EURO summit is the one incontestable argument for buying as much gold as possible right now. 

Tue, 10/25/2011 - 08:54 | 1807650 cossack55
cossack55's picture

I hear the Governor of Pennsylvania is going to wrap Greece into the Harrisburg "solution".  FT backwards is TF. Hahahaha

Tue, 10/25/2011 - 08:55 | 1807653 Zoran
Zoran's picture

The unbridled greed of the few has resulted in great damage to global economies and society.

They say no good deed goes unpunished, and the reverse seems to have happened here. Their bad deeds have been rewarded with bailouts, blame shifting and bonuses.

It makes me sick.

I wonder about the psychology of property bulls and property investors in this environment. Do they really think this is a new paradigm where housing bubbles never burst. Reading the news headlines below, you’d have to say so…..

http://www.australianpropertyportal.com/News

If these people are still living in such a world of delusion, what hope is there for society. Can the ‘Occupy’ protests ever change the minds of people who are that sure the bubble is a myth?

Let’s hope we can change their outlook. For if we can’t, the world is doomed.

Tue, 10/25/2011 - 09:05 | 1807688 GeneMarchbanks
GeneMarchbanks's picture

A long post having nothing to do with the subject -1. The Aussie housing bubble is of minor consequence in the grand scheme of things, unless of course, you live there. In which case, I must remind you, nobody cares.

 

Tue, 10/25/2011 - 09:10 | 1807708 Zoran
Zoran's picture

Sorry, I posted the wrong link and now it won't let me edit it.

Here's the one with the spruiking headlines.....

http://www.australianpropertyportal.com/News

It goes to the heart of the matter. Trust no-one.

Google "Financial Crisis Mark 2 Alert" if you don't believe me!

Tue, 10/25/2011 - 08:55 | 1807654 Miss Expectations
Miss Expectations's picture

Ecofin...almost as good as WTF. 

Tue, 10/25/2011 - 08:56 | 1807660 danger close here
danger close here's picture

Futures unfazed; nearly green. Moment any denial rumor, market rockets 200+

Tue, 10/25/2011 - 09:07 | 1807695 jcaz
jcaz's picture

Might want to upgrade from those 3 hour delayed quotes there, skippy......

Tue, 10/25/2011 - 08:59 | 1807666 slaughterer
slaughterer's picture

Looks like the ES will not make it to its 40 DMA after all, if the Euro clowns start up the circus before Wednesday night.   I think one of them tipped over the bear cage.

Tue, 10/25/2011 - 08:59 | 1807667 prophet
prophet's picture

G-20 BINGO.  TGI.  Can Do It. 

Dissent is forcing the issue, a good thing.

Tue, 10/25/2011 - 09:00 | 1807669 DormRoom
DormRoom's picture

In other news, John Bolton, admits recent American wars have been over oil, and lil else

 

http://www.youtube.com/watch?v=wJ09U_a80MM&feature=player_embedded#!

 

#occupywallstreet

Tue, 10/25/2011 - 09:01 | 1807672 LongSoupLine
LongSoupLine's picture

There's a good Polish joke in there somewhere...

Tue, 10/25/2011 - 09:34 | 1807782 Fundemental Pri...
Fundemental Principles's picture

You know how you drive a Polish National crazy?

Put him in a round room and tell him there's an EFSF solution in the corner.

Tue, 10/25/2011 - 09:59 | 1807916 Ruffcut
Ruffcut's picture

Same type of thing keeps obabble busy in the oval office. Cheney used to tell bush to go sit in the corner.

Tue, 10/25/2011 - 09:01 | 1807674 Mae Kadoodie
Mae Kadoodie's picture

The package, the plan, the agreement, the meeting..did I leave anything out of my toolbelt?

Tue, 10/25/2011 - 09:03 | 1807683 Tsar Pointless
Tsar Pointless's picture

I think you have everything you need.

Have fun storming the castle!

Tue, 10/25/2011 - 09:06 | 1807694 LongSoupLine
LongSoupLine's picture

I do believe the ultimate silver buying opportunity is upon us soon.  Stay nimble my friends.

Tue, 10/25/2011 - 09:07 | 1807696 YesWeKahn
YesWeKahn's picture

Wait, this is just the first rumot. The next would be that the meeting is still on, oh, sorry off, no, it's on, no it's off definitively, yes, it's on...

Tue, 10/25/2011 - 09:07 | 1807697 Odin
Odin's picture

Got Shorts?

Tue, 10/25/2011 - 09:07 | 1807699 radix46
radix46's picture

Actually, you nearly got the bazooka option, but you missed a bit out.

First they print money, then they buy gold with it. Instant recapitalisation.

 

BAZOOKA.

Tue, 10/25/2011 - 09:11 | 1807713 SheepDog-One
SheepDog-One's picture

So the gold they buy with their printfest money will cost them what, $5,000 an ounce?

Tue, 10/25/2011 - 09:13 | 1807718 radix46
radix46's picture

It depends. They could make a market starting at $50,000 if they wanted too.

Now that is BAZOOKA.

Tue, 10/25/2011 - 09:20 | 1807741 SheepDog-One
SheepDog-One's picture

Right....but who does that benefit in any way? I think these guys got absolutely nothin.

Tue, 10/25/2011 - 09:32 | 1807773 radix46
radix46's picture

It benefits them. On the present course, the system collapses and they lose power. Recapitalising gold can wipe out debt  and form the basis of a new system whereby they can keep control and provide "the soultuion". We win with a more sustainable system, they win by keeping control.

Tue, 10/25/2011 - 09:09 | 1807704 Overflow-admin
Overflow-admin's picture

Excessive news post-poning decision-makers meeting is an indicator that the real meeting will be held in secrecy to surprend the markets.

 

Amazing conference... but raises even more questions than it answers...

Preparing for Euro breakup Conference held in the European Parliament, Brussels, on Wednesday, 12th October 2011, Room A1E2, from 10.30 a.m. to 12.30 p.m. http://www.youtube.com/watch?src_vid=4HlzozqfIdU&annotation_id=annotation_267150&feature=iv&v=426xE48MSlM
Tue, 10/25/2011 - 09:12 | 1807707 Overflow-admin
Overflow-admin's picture

Auto-reply. No, the usual suspects didnt' attend.

 

Edit: bad translation "surprend". Correct verb is "overtake".

Tue, 10/25/2011 - 09:16 | 1807725 SheepDog-One
SheepDog-One's picture

Right, because all that matters is bubble stocks.

If I had any, Id be selling them today just based upon a month long run up...only a degenerate gambler holds and rolls the dice again here. 

Tue, 10/25/2011 - 09:10 | 1807709 SheepDog-One
SheepDog-One's picture

Sell the news today, tomorrow will be too late. These guys got nothin.

Tue, 10/25/2011 - 09:12 | 1807714 Crassus
Crassus's picture

They're examining the Albanian lottery option (1991).

Tue, 10/25/2011 - 09:14 | 1807721 Dick Darlington
Dick Darlington's picture

 Oct. 25 (Bloomberg) -- The eurozone has “already
collapsed” and will vanish as the region is on the brink of a
banking crisis that will destroy the currency, Zafer Onat, the
chief executive of FinansInvest, a Turkish broker owned by
National Bank of Greece SA.
     “I believe that the European monetary union doesn’t
exist anymore,” Onat said in an interview in Istanbul today.
“I think it already collapsed but no one has said it yet. Now
we are in a deadlock. One of the world’s major reserve
currencies will disappear.”

Tue, 10/25/2011 - 09:18 | 1807730 SheepDog-One
SheepDog-One's picture

Exactly right it has already collapsed, they just dont know how to print the headline....cant we have just ONE more day of FullRetardFest??

Tue, 10/25/2011 - 09:24 | 1807750 Dr. No
Dr. No's picture

I think it already collapsed but no one has said it yet. Now
we are in a deadlock. One of the world’s major reserve
currencies will disappear.

Wait, wasnt that a quote from one of the Super committe members?

Tue, 10/25/2011 - 09:14 | 1807723 Irish66
Irish66's picture

What was case numbers on housing

Tue, 10/25/2011 - 09:19 | 1807734 SheepDog-One
SheepDog-One's picture

Fuck I'm sure people were buyin up houses hand over fist!

Tue, 10/25/2011 - 09:19 | 1807733 letitgo
letitgo's picture

The dominant logic of every article here recently is that Europe is going to mess it up, the world economy is going to go into a tailspin and they're going to start printing in the eurozone.  All this seems to help the traditional PM-holding thesis that's been spot on most of the past couple of years, but I'd appreciate people's views on the more subtle question of the "relative likelihoods" of these different pieces of the puzzle occurring. 

First, what makes Tyler and the rest of you guys think that such an obstructed system which finds agreement on the bailout so difficult to achieve is capable of getting the agreement in place to completely contravene the clear and fundamental rule in article 127 TFEU and start printing euros in a way which undermines price stability?  Seems a little contradictory to me.

Second. if you're really thinking about wealth preservation in a very uncertain world (which most of us here seem to be), then surely it matters whether Europe printing is as likely or more or less likely than a worldwide crash, because a crash would have a net negative effect on all assets, including PMs, while euro printing would have a positive effect on PMs and everything else (even stocks) valued in that currency.  I personally consider a crash more likely than printing because of personal views and knowledge about German attitudes and Eurozone rules on price stability so am not buying PMs in Euros.  If, on the other hand, you think euro printing is more likely than another leg down in the recession/ depression, surely you'd be buying PMs with your euros.  Even if you're silly enough to only think in terms of USD, you still need to think about this dynamic because the inter-currency movement seems to have a massive impact on everything including, of course, commodities.

That's why I think we need to talk about relative likelihoods of the different events instead of just saying "the eurozone leaders have no idea, the world economy is doomed, they'll print euros so buy gold".

 

Tue, 10/25/2011 - 09:30 | 1807765 LawsofPhysics
LawsofPhysics's picture

"what makes Tyler and the rest of you guys think that such an obstructed system which finds agreement on the bailout so difficult to achieve is capable of getting the agreement in place to completely contravene the clear and fundamental rule in article 127 TFEU and start printing euros in a way which undermines price stability?"

Well, I am not a financial person, per se, but to answer your question - one thing I can think of is the discount window at the Fed, which has seen a massive outflow to european banks since QE2 ended.  They may not be printing Euros, but they sure as hell are printing dollars, some of which can easily be exchanged into euros, which then need to be printed.  Fucking DUH.  

I will only add that this is one of the downsides to having the "reserve" currency in such a fractional reserve banking system.  China wants the reserve currency?  Call their fucking bluff, give it to them and FORCE them to be transparent and let the Yuan float against other currencies, inflation and social chaos will end China's quest for world domination overnight.  Don't be stupid, China's leaders and corporate America are working together behind the scenes as both benefit from a world working for chinese wages.

Just my two cents.

Tue, 10/25/2011 - 09:56 | 1807898 letitgo
letitgo's picture

I'm not strictly a "finance person" either, but European banks borrowing dollars through the Fed's discount window to meet short term liquidity needs doesn't seem to inherently involve Euro printing to me.  Indeed, the fact that they have to borrow dollars (not euros), suggests that the eurozone isn't prepared to expand liquidity itself (which fits best with the "they won't print euros" thesis).  So a european bank has dollar debts on its balance sheet, so what?  Even if it subsequently goes under and gets nationalised, this will presumably affect that bank's shareholders, insurers etc before it affects Eurozone public debt à la Ireland.  Even if that happens, there's still a step between bigger public debt and printing/inflation -- has Japan managed to inflate and lower the value of the yen with its massive public debt? So to say that Eurozone banks borrowing USD through the discount window leads to Euro printing seems to be a massive stretch.

I'm still yet to have anyone show me how even a European banking and eurozone crisis situation kills the euro (not just against risk-off currencies like the USD and JPY), but against everything, even though this seems to be what people are assuming.  Hell, if you've got euro cash holdings based in a German account, they might even go up in value against everything (including PMs) if the eurozone breaks up.

Tue, 10/25/2011 - 11:05 | 1808287 LawsofPhysics
LawsofPhysics's picture

Maybe, but you are still simply saying that one fiat (the euro) will perform better as they ALL race to the bottom.  This still isn't a good situation.

Then there are the issues of price stability, quality of life, and the public and private bills that must be paid OR you get total collapse/chaos.  For example, what happens when governments simply can not pay, or even agree on what to pay?  I don't care how fucking "strong" relative to other currencies the euro is, what happens if, for example, the italian government simply turns off the lights and goes fucking home.  But I digress, because personally I think this could be a good thing.

Tue, 10/25/2011 - 09:32 | 1807772 Stax Edwards
Stax Edwards's picture

OT: Maximum momo pain being inflicted this morning.  NFLX -38% haha  

 

Tue, 10/25/2011 - 09:36 | 1807792 Curtis LeMay
Curtis LeMay's picture

 

13.45 Germany has made it clear once again that it does not see any kind of expanded role for the European Central Bank in the rescue measures the eurozone is due to announce tomorrow.

Angela Merkel said the country opposes the statement in the draft conclusion that calls for the ECB to keep buying government bonds in the secondary market.

She said Germany does not want a declaration from politicians telling the ECB what to do.

http://www.telegraph.co.uk/finance/financialcrisis/8846201/Debt-crisis-live.html

Nigel Farage is going to have to dig up the euro-casket he burried in a very moving ceremony last month - and bury it again! This time, however, it will be covered on world-wide TV :)

The ECB is itself broke anyway right now. All it is doing is borrowing and spending German, French, Italian, Spanish, etc, folks money and is now $150 billion Plus in the hole.

Remember, the ECB is solely funded at the pleasure of the people of the independent nations of the so-called EU - the EU collects no taxes itself...and when push comes to shove, does anyone in their right mind think Germany, or France, or Italy, etc, are going to favor paying back the ECB's debts instead of saving their own asses? No fecking way... 

By the way, here's the Youtube video of Nigel and his simply beautful ceremony: http://www.youtube.com/watch?v=SAH3hpCdthw

Tue, 10/25/2011 - 09:38 | 1807797 Thunder_Downunder
Thunder_Downunder's picture

The most shocking thing about this is that the euro actually sold off on the news... *gasp*

Tue, 10/25/2011 - 10:16 | 1807992 Die Weiße Rose
Die Weiße Rose's picture

look around you

there are 7 billion of us Cybots now

waiting to be initialized by the selfregulating cybernetic contagion program of Deus ex Machina.

by the time you read this all Cybernetic systems have been optimized via selfregulating synergetic algorithmic contagion programs.

GOD

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