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Europe Is Warned To Stop Making Stuff Up And Delaying By.... Europe?
It is time for our first semi-surreal news of the day (full blown will be any headline out of Europe that things will be ok). Per Bloomberg, Europe is living “on borrowed time,” according to Sharon Bowles, chairwoman of the European Parliament’s economic and monetary affairs committee. "The next time leaders meet there has to be progress on all key elements,” Bowles said at the AFME European Government Bond Conference in Brussels. Euro bonds are probably more “a medium and long-term issue” rather than an immediate solution, she said. They may be easier to implement “when better times are restored,” she said. Which is funny, because the WSJ just reported that "Europe's efforts to deliver a comprehensive plan to resolve the euro-zone debt crisis were in danger of unraveling ... as disagreement between Germany and France over virtually every point." Additionally, the only calculator in Europe's possession appears to have made it to Belgium and Spain, both of which have made loud noises demanding that the ECB play a major role in the EFSF, considering that both countries are also now virtually locked out of the debt markets and hence insolvent. But if there is one thing everyone in Europe agrees on, it is that America has to bail it out. Again from Bloomberg, "Euro region leaders must talk to the International Monetary Fund to discuss its involvement in European Financial Stability Facility operations and can’t take any decisions on the subject at an Oct. 26 summit, a German government official said in Berlin today, speaking on condition of anonymity." Sorry American taxpayers, if you thought your tax dollars would be limited to only funding US banker bonuses...you were wrong.
And now, we sit in wait, with bated breath for the "semi-modestly surreal" news upgrade out of Europe. It won't be long.
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Sounds like good enough reason for futures to pop +1%!
European top secret plan to fix financial predicament is leaked on website of vulgar American TV show:
http://www.southparkstudios.com/clips/224688/no-space-cash
a 2 trillion increase in the EFSF does that. makes me wonder if greece is gonna move out soon.
All is well for option exp. Time to buy some puts at the highs today.
Reported in the UK Telegraph today:
"Ahead of the eurozone finance ministers' meeting, Eurogroup chairman Jean-Claude Juncker said discussions would focus on how to increase the firepower of the European Financial Stability Facility - or bailout fund, recapitalisation of banks and second package of finanicial aid for Greece."
"We will agree in the Eurogroup, at least I hope it will happen this way, on the sixth tranche of Greek aid, based on the report of the (EU/IMF) troika .. [and] ... talk in detail about the leverage of the rescue fund, but without committing to any details"
Ummm, isn't discussion of leveraging or expanding the EFSF precisely what the German side said yesterday evening is definitely NOT even on the table for discussion?
Good luck with trying to bounce Germany into a position they don't agree with Jean-Claude. We've seen that trick work many times before, but this time, I think Merkel will tell you where to go.
Yea surely the cunning French midget can just TRICK Germany into handing over the cash....Sarkozy trying to figure out how to slip Merkel a date rape drug...not gonna work.
he's a dwarf not a midget. Dwarfs have RIGHTS. Midgets do not. That's the difference.
IMF world domination bitches
IMF is a big winner...i agree.
Fuck all this European bullshit...1.3 trillion bazooka....the market wants this to be a straight up liquidity driven bull ramp...as of 03/2009 when the FED pulled its crap....way to dangerous to figure out where the financial markets are going!!!! WAY!!! It could induce a 1.50 rally in the EURO and unleash a flood of liquidity for UBS rogue traders to gamble with. I rather hangout in the park today with some hotties...http://blogs.marketwatch.com/specialreport/2011/10/20/hot-chicks-video-a...
Baffled. If they want IMF involvement, all they need to do is let the Euro drop like a rock, crash the markets, and Ben will fire up the printing presses while everybody is freaking out about there being no Doritios in the Jiffy Mart. What the hell are they waiting for here?
Exactly, they could easily just stage a Euro crash, the dollar would spike sending equities plunging and Ben would then run to hand over however much they want.
Its almost like they all know its the end, and no one wants to make the first move.
http://www.youtube.com/watch?feature=player_detailpage&v=Y-rFT-uHm4w
those would be greenback dollars they're fighting for btw.
Oh well, what's a few more dollars printed at this point ,,,
Like a drop of water in an endless sea ~
Our wise overlords are allowing the fiat paper dollar price of gold and silver to rise today.
How magnanimous of them.
Oh, that explains it.
Thank you great PTB.
Calling captain Stubing, panic in the air!
New euro slogan:
parturient montes, nascetur ridiculus mus
From mountainous labor is born a ridiculous mouse.
In the end, the key is still QE3. This time, it is not MBS, it is not treasury, but European bonds.
frenchies finnally have to learn that it is Germany's Europe. No more talking Sack-ozy, Mr. Merckel is telling you how this shit will go down. and shit it is, and down it will go.
It isnt germany's Europe.
We have a saying that Beggars Can't Be Choosers.
Those who need money are not necessarily in a position to dictate terms to those who have it.
French will wave the wite flag.. As they always do. But they will continue this horseshit for as long as they can. Merckel already has plans for the Eiffel tower.
Ben ain't got no more ink my brother...literally
If they were going to printfest, they already would have.
Nah, I think bernak didn't have enough crisis to print, so he just spun up operation twist and is letting things simmer until it starts boiling again and he can 'save' us with more money.
Nah, the real fact is theyre happy to let the idea that QE is always coming, soon, to rescue stocks....fact is, theyre done. Next on the agenda, collapse. Just watch the shit hit the fan as soon as Europe FINALLY has to come out and announce a plan, it will of course be seen as a joke and BS....Europe fails then its the US turn.
Get off my case MOTHERF%*#ER !
History rhymes but not all that well....
EU to Self: Drop Dead
Ref: http://www.nydailynews.com/features/bronxisburning/battle-for-the-city/F...
Funny ... "the Dow slumped" in reaction. A whopping 12 points.
"...the only calculator in Europe's possession appears to have made it to Belgium and Spain..."
OH Come on Tyler! Now you're just making stuff up! :)
These damn blogs making shit up again.
Where is your confidential source that there is only one calculator in europe and spain has it?
Damn blogs need to be regulated by the government.
KAOS in da CORE
Austrian finance minister says up to 7 EFSF options on the table and discussing EFSF options todayThe bullshit has gone recursive!
Europe can take their market extortion tactics and shove it. It's too early for QE3; that will happen just in time for Obummer's reelection.
So now we have another weekend of chaos and suspense...these fuckheads NEVER tell reality and this is why things like the French Revolution spark off. People are only going to swallow so much bullshit.
They brought this on themselves by wasting valuable and hard earned credibility through public announcements that all was well.
Credibility takes years to build and can be lost in an instant.
I guess they forgot what John Adams said " facts are stubborn things."
Its good free food...why not have a lot of meetings.....Troyka mi again baby...
I am thinking long guillotines would be a good investment at this time.
According to Art Cashin this morning, the market now wants the EU to delay any agreements as long as possible...a "stay of execution" he calls it. That's different than what the media is reporting. Basically, the market knows Greece is hopeless and delaying any agreement buys the market time.
The afternoon rally was all about a “stay of execution” - the fact that the “deadline” for a plan had been moved out, to at least Wednesday and maybe even into the next weekend.
Shortly after trading began in New York, a series of statements out of Europe made it evident that Germany and France were unable to agree on a bailout plan. At this point, they probably couldn’t agree on whether or not it was raining outside. That canyon-wide separation suggested no chance of a cohesive statement when the summit ended on Sunday night. That would never do, since the summit had been hyped into what Peter Boockvar of Miller, Tabak aptly called “Another Weekend Like 2008” with potential Lehman-like consequences.
So, when newswires, citing sources in Merkel’s group, said the summit would proceed as scheduled, stocks headed south (circa 10:15). “My gosh!” They’re really gonna go through with this? This could be a disaster!”
Things shifted shortly after noon when Merkel canceled a schedule speech to her parliament. The speech had been seen as the “set up” for the Sunday bailout proposal. The cancellation announcement looked like a stay of execution and stocks headed higher. The rally gained more fuel on later comments that the “plan” might not be announced until Wednesday or even Halloween weekend.
So, rather than shocking the markets by coming up empty on Sunday night, they opted to change the deadline. Maybe they can find an answer. Maybe the horse will learn to fly.
RIGHT just 'delay more', thats the key then everyone will be fooled at a later date...
Again...who is this supposed to fool? Peekaboo you cant see me?
I wonder what may be the reason for this execution doubts by 'the markets'. I guess, the massive haircut, coupled with a non-credit-event puts some participants in a hot seat. Ending the powerplay without a shot will reestablish the political power, though. I don't think the markets can increase the pressure to a similar level again. The European governments and the ECB have understood the levers and will fight to control them.
I think the execution doubts are because of Germany vs. France.
I am no longer buying this idea of Germany and France, just not getting the plan straight. If the threat was still so credible, the stakes for France would be so incredibly high, they would have to make concessions and accept the German line, but they apparently don't. I believe, this Franco-Germane issue is a political play to test the markets for execution will.
that assumes there is a solution. The fact is nothing that has been proposed will fix anything. I think the Europeans understand this, massive pain is coming, and by doing nothing, they can each blame one another when TSHTF. Nobody wants to be the one to come up with a plan, because then they will be blamed when said plan does nothing.
And why the avoidance of a credit-event? I bet the CEOs of systemically relevant banks by now have reported to the EU that they are hedged but not speculative short EUR sovereigns (which in case they had been would have been a suicide commando given that banks will be asking for state support). So, the hedge effect could be managed by recapitalizing (the terms to be discussed, as recapitilization would be the price for banks to agree to the non-credit-event). Not systemically relevant institutions such as smaller banks or even hedge funds would be left out in the cold. Any socially relevant power opposing this approach: no!
Seriously, I am not getting it.
If Europe alias France and Germany decide to prop us the EFSF to be able to ringfence Italy, the only thing this does is transitionally manifest the surreal market belief of risk-freeness (or at least identical risk among sovereigns) along with differences in risk-pricing. Can anyone explain to me, how an asset can be accepted to have different prices but the same risk or no risk. To me, that's just not plausible.
Instead of calming any speculation on a sovereign's default, Europe only sets a large-scale precedence, inviting to manipulate spreads, create difficulties for sovereigns to borrow, eventually further driving spreads, as the market will know, up to the size of Italy, they will come and pay to rebalance the spreads.
There is no risk-freeness, not even in sovereign bonds, and different from what the market is indicating, a default will not imply a drying up of sovereign bond markets, as there are just not enough alternatives, especially given the size of the sovereign bond market.
So, why accept the strange diction from 'the markets' that sovereigns are supposed to be risk-free.
And what would happen, if the markets did dry up? Sovereigns could no longer refinance their debt and would eventually default, implying that the market would have to carry the bag. Without need for further structural debt financing, no sovereign would have to fear this. With target balanced budgets by 2017 to 2020, the market's powerplay would implode pretty quickly.
But besides, the calculations for a bazooka prop-up of the EFSF won't add up anyway. Besides, France and Germany, there is noone left with the potential credibility for large-scale guarantees. When the Greek default is finally announced, the dynamics evolving in France will soon limit the credibility of their status as provider of guarantees. So, it would be up to Germany to carry the burden. To Germany, another trillion or more in debt is neither balanced by past nor by future benefits from the EUR, as it would deprive it from its fiscal and economic policy power, forever. Noone would accept that price for a possible solution to an issue involving so many cultural differences and uncontrollable variables, even if that possible solution yielded even less probable future benefits.
I guess, as bad as European politicians are acting currently, they are signalling that they won't be the markets playing ball. The market may inpose a power play, but participants know full well and are becoming aware of the public anger that will unleash, if they let the system or parts of it crash. And one thing, politicians are definitely better at than bankers is the political blame game. The public would not lynch politicians, who have very publicly been fighting the evil markets for two years now.
Just some attempts of thinking out of the box, you may call it unreasonable, I just think, the way, the markets expect this to evolve is not going to happen.
Its all just BULLSHIT! Now as Art Cashin just got done saying, the only real concern here is how long can they kick the can, how many more 'carrot and sticksave' days can they string in a row......because as soon as they actually SAY something then its over!
But don't you believe the market has realized that in this complex Europecracy, there is not politicial will, ability or public backing, may it be stupid or smart. In that case, execution by the markets would harm the markets. Avoiding a shot will lower the credibility of the threat, though.
Sharon Boyles? Sharon Boyles? Sharon Boyles?
http://www.youtube.com/watch?v=RxPZh4AnWyk&feature=player_detailpage
ooops. sorry, i was confused.
Fix means to repair, not bandage. This whole situation in Europe and the US is a joke.