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Europe's Grand Plan - 3 Strikes And You're All In
Via Peter Tchir of TF Market Advisors,
The "Grand Plan" on October 27th had 3 prongs.
Bank recapitalization. That has been a failure. The EFSF gave up on that and just said it would loan to member countries so they could recapitalize. Since the EFSF was supposed to lend to governments anyways, how is this different? So fail on any form of standardized pan-European bank recapitalization.
An IIF led PSI agreement in Greece. Ackerman stepped out of the limelight and left the hot potato in Dallara's hands. It seemed obvious to anyone at a bank that the IIF had absolutely zero ability to commit banks to anything. That has turned out to be true as well, and last report is that Greece is now negotiating directly with private holders. Fail on the 50% haircut.
The EFSF was going to leverage and get outside money. In spite of a lot of frequent flier miles and some fancy summits, no real outside money has materialized, and leveraging the EFSF has been a fiasco. The meeting today that was supposed to confirm it, has turned into a who can downplay it faster quote fest. This has to be a failure, and seriously who allowed such sloppy documents to be prepared and sent out, time and time again?
So they have failed on each of their major initiatives, but now the market is comfortable that they will get ECB to "print" and that some form of "policy changes" will be fast tracked. Giving them the benefit of the doubt that they will accomplish things "this time" seems one thing. Actually believing the plans will work out is another. Virtually all the analysis ends with print and treaties and we will be fine. I doubt that we get those yet, and I remain dubious that they will work and won't unleash new and bigger problems. In baseball, three strikes and you're out, but in this world of central bankers and politicians, three strikes seems be at least acceptable, if not actually good.
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All in, bitchez
There isn't enough good music left for this dance marathon.
ECB is all in with just a pair of 2s.
Mr. Market has a Royal Flush.
Retards.
They are going to need a bigger boat.
"Grand Plan"
sounds alot like "Super Committee"
both to result in Grand Super Bollocks
Gold
Gold and silver... maybe a little platinum for good luck.
Platinum is a steal at this price.
Historically, yes! Kudos!
Unless the roles of the PMs are changing. FOFOA says gold is the one to have, that we will see a huge quantum jump in price as paper gold burns (approx. 100 paper claims on each physical oz of gold), and physical gets scarce. The other PMs will not perform nearly as well FOFOA says.
I respect FOFOA a lot (and contribute), but I have Pt and Ag as well. It is hard for a Bearing to predict the future, so I diversify.
Anyone else notice that Platinum EAGLES are hard to find? Pt Nobles are still available last I looked.
Anyone else notice that Platinum EAGLES are hard to find?
Pretty much impossible. I've been tracking ~10 dealers and nobody has 1oz US or Canadian coins.
As a european buyer, platinum is impossible to get at a decend price.
But that's one of the only PM I don't need. It's not mainstream enough.
The only platinum I have is my wedding ring that that one probably only weights 2 grams.
IN SILVER AND GOLD I BELIEVE!!
And either way, they'll shine. I don't care about the bigger one right now. Most probably silver because everybody is chasing the gold dragon.
Only if there is a successful economy in our future. The outlook for continued use of Platinum in automotive exhaust system's is dim because the Chinese don’t use them.
I think in the minds of most people gold and silver have historically been perceived more as money and cash than platinum. Platimun is more of an industrial metal, it is a noble and precious metal, but somehow, I cannot picture anyone performing any transactions with platinum coins. When this mess leads to the inevitable printing party/currency crisis, people will turn to gold and silver, not platinum, rhodium or palladium, they may be expensive, and they will follow the commodity complex to the sky, but they have never been thought of as money. These have and will always behave like very expensive industrial commodities in my opinion.
Here is a simple experiment you can try: Go ask someone what they know about platinum. They probably know more about gold or silver.
Fail, after all, is the name of the game. How do you think Corzine got where he was?
Because Rockefeller likes the way Corzine's beard tickles.
Pretend Economics, the 21st Century School.
Bread & Circuses still flowing last I checked. Won't change anytime soon.
Which was also the 44 BC school of economics in Rome. It's looking like the end result will be the same this time around. Long live the terminal Republic!
Generals coming back with armies without Senate's permission?
That would be awesome, then I could get one of my best technicians back.
Those three prongs hurt my rectum.
Don't worry, by January we'll have other utensils up...
quick someone call Dick Bove
BAC almost in the $4's
Can we have a conference call with Uncle Warren as well?
At what point do they get de-listed? Isn't it about $5.00 and they come off the active market?
I would imagine a reverse split would happen at say 1 for 10 and kick it up to $49/share...viola! problem solved.
I thought it was $5 and they get dropped from the DOW.
Under a buck - you gotta wait a week.
quick call Buffett...at least he has skin in the game. AMR should take down GE if east European real estate doesn't first. Odd that it's up.
Yep, we need big bonuses to hang on to the kind of talent that thinks this way.
EFSF, leverage, recapitalize...who cares?!
Victoria's Secret Fashion Show on tonight!!!!!! Owooooh!
Rumor has it Berlesconi skipped out to go get a bag of weed and clearly has arrived back on the scene with product in hand.
"Grand Plan" = major failure
Treaty changes will be a failure.
ECB printing will be a failure.
Austerity will be a failure.
Even the replacement currencies after the Euro fails will be a failure.
Nothing has failed, as there was never anything real that could succeed. It's all just a bunch of head-fakes and counter head-fakes to buy time as they make off with the loot while waiting for a "political mandate" to emerge. Then the real solution emerges, massive pain for the 99.9%ers.
2012 is gonna be such a freakin' hoot, I tell ya!
In voice of Dr. Evil: Rrriiiiiiggghhhht.
So let me see if I'm getting this straight. If we give the banks lots of free money everything will be OK, the populace will be settled, and nothing bad will ever happen again.
Where is walstreetpro2 when I need him?
http://www.youtube.com/user/walstreetpro2
PS - Looks like it's about time to BAC up the truck and load up on some BAC puts if it breaks below $5 and can't get up again.
'Right, we'll try free money to banks again....SURE its failed every time so far, but 1 more hit should do the trick!' Said the washout rock bottom heroin junkie.
Day low $5.03 (so far).
It is sureal to watch this live and in color.....all the talk is how to buy something that should never be sold in the first place....all because the politicians cannot cut any spending...debt...it does not have to be used...but if a politician can give you something today...that someone else will have to pay for in the future...he looks better and get reelected...and the Bankers are all for it because they can play in the debt game too...and make their fees...%´s ...commissions etc.....the average Joe just gets his government check....he has no idea where the cash comes from or cares...but he does care if it is cut...or changed...or even talked about....so what do I think is the end game....the central banks will be the only buyers of the debt...and that will work for awhile....until it doesnt....and that will be when someone or some country will no longer accept the fiat for trade...the Banks will wither away as they will get shut out of the markets...they will have one big ride with CDS´s ...but that will end when the first country defaults and the dominos fall on that casino...Jow ill get his check..but it will buy half of what it used to the year earlier..its depressing to watch this...it is rats drowning...they all deserve to drown...but you feel sad when they do...
when is the vix going to move?
To misquote Jon Lovitz..."Then I became the King Of the World and everythng I touched turned into gold, yeah That's the ticket!"
I'm going to have to consult my favorite investment advisor Kevin Rowland on this one. Here's what he has to say about printing money.
http://www.youtube.com/watch?v=-NWFA6g2x-4&list=UUkOjiWEQs7ZgmAGS8kKBN_Q...
But HOLD on just one second...Fail is such a strong term - one MUST consider the objective - You Mr. Durden being a man who wants accountability & responsibility can be considered a man of action who wants concrete results...The Merkozy has a totally different agenda...one akin to performance art as an act of governance...I mean consider the fact that the Merkozy's EU interpretation of Abbott & Costello's famous "Whose on 3rd skit?" has been quite successful - each time these two have taken the stage they have bought time with NO INVESTMENT whatsoever...then Merkozy brilliantly introduced the world to their rendition of MacBeth's 'Play within a Play' (EU->Plan about a Plan) - NO INVESTMENT & they delivered NOTHING MEANINGFUL then Merkozy introduced the world to the EU version of CLUE by replacing Gpap (in Athens with the Debt) for Lucas 'Colonel Mustard' Papademos & ousted Silvio Berlusconi (in Rome with Bunga Bunga) for Mario 'Professor Plum' Monti...so what is the next act on the Merkozy 'All the World is a Stage - Brother can you spare a dime' tour? - remember life is all about the journey...results are so yesterday...Vive' La Merkozy! </sarcasm off>
The Grand Plan- 'Um...brother can ya spare a few trillion Euro'?
BAC will be replaced in the DOW by C?
WFC?
FCX if there is a God in heaven.
the best is yet to come ;-)
Glad to hear someone is living in reality. The fact the market is down only -3 and change YTD is ridiculous. The world is so much worse off than it was Dec. 31 2010.
EU officals have been pretty quite the last 48 hours after the flurry of weekend IMF bailout rumors. Taking longer than usual to create the next "kick the can" rumor. Must be running out of ideas. That, or they finally given up and are closing out thier bank accounts before the system collapses and arranging for their gold to moved to an undisclosed location. South America anyone?
There was a new rumor of the ECB funneling money to Italy through the IMF today.
The first time we heard the rumor that Italy had rejected assistance from the IMF, one got a horrible sick feeling like when you hear the cancer is back. (Greece redux).... So the question is, things just get worse and worse, but somehow the markets always seem to recover on faith that the Merkozy are going to pull off a miracle. What gives??? Why, after so many lies and obviously embarassing reversals does this farse continue???
Fear. It's what TPTB are counting on. Fear and stupidity. As much as I hate the word, a pardigm shift requires that everyone reconizes that they have been lied to and that this is a farce in the first place. Good luck with that.
People are VERY cheery today in Finland. One local paper opened a poll asking "Do you believe eurozone will break up?"
Results so far: 83% yes, 17% no.
There You see the CONfidence REAL people have on the Titanic...
nein, nein, nein, go suck... grandmother's eggs; I will never agree to ECB dilution. I am Germannnnnnnnnnnnnnnnnn.
The boy who cried wolf?
How is printing money to monetize debt going to address levels of unsustainable debt?
That is the question and soon everyone will arrive at the same conclusion.
Take the bitter medicine now or die of pneumonia later.
There's a cure to all this madness. It's called DEFLATION.
http://www.protothema.gr/greece/article/?aid=162590
This time in Heraklion
Another child at school fainted from hunger
The Society of Heraklion is Shocked after the revelation that a high school student of the county fainted in class from hunger.
It publishes the newspaper "New Crete", fainting child revealed that he experienced the misery of the whole family.
The child's mother who was contacted to go to school teachers confessed that the whole family had to eat two days, so it caused the blackouts episode of the student
Only the begining.
You been to Europe? ECB prints to overkill, Germany will take the ECB apart within that week. Either that or Germany has riots/inflation panic etc and it's government is taken apart with in a week.
Nah, they're appealing to the IMF to SOS ... so it's going to be ok now ...