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EURUSD Soars On Reuters Report That Greek Deal Is Reached... Which Is Same Deal As July 2011
Yeah, we had the same response as our readers when we saw that freak move in the EURUSD. Apparently, despite the fact that absolutely nothing has been resolved, Reuters just ran a headline that "Euro zone reaches deal on second Greek bailout package." And that is all it took for the EURUSD headline scanning algos to surge by 60 100 pips. That there nothing substantial in it, or that this is merely a rephrasing of the actual Bailout 2 announcement from before, is irrelevant. Here is what the actual Reuters report said.
Euro zone finance ministers struck a deal early on Tuesday for a second bailout programme for Greece that will involve financing of 130 billion euros and aims to cut Greece's debts to 121 percent of GDP by 2020, EU officials said.
"The financial volume (of the Greek package) is 130 billion euros and debt-to-GDP (will be) 121 percent. Now it's down to work on the statement," one official involved in the negotiations told Reuters.
Another official confirmed that the financing would total 130 billion euros with the aim of reducing Greece's debts from around 160 percent of GDP now to 121 percent by 2020.
And from AP:
The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels - was expected to bring Greece's debt down to 120.5 percent of GDP by 2020, according to the official. That's around the maximum that the International Monetary Fund and the eurozone considered sustainable.
Some eurozone ministers had indicated before the meeting that they would not accept a deal that didn't put Greece's debt on a sustainable path. The official spoke on condition of anonymity because a formal announcement was pending.
The deal should also give the green light to a related debt relief from private investors, who are expected to take significant losses on Greek bonds they hold.
So just the little matter of the statement, aka the details, which is what has been the stumbling block for the past 6 months. And incidentally, the broad strokes of this announcement is a carbon copy of the second bailout deal reached back in the summer of 2011. In other words, there is nothing substantial to this, and is merely boilerplate. But it was good enough to fool the algos. Now the only question is how long until this latest and greatest deal concoction falls apart again, and the whole farce is repeated all over.
In other news, De Telegraaf reports that the PSI has been agreed on and will reach 75% a haircut on Greek bonds. Translation - next up we have an exchange offer, the failure to reach a voluntary threshold, CACs, and all the fun the trickles down from triggered CDS.
For those bondholders of peripheral debt, as the Greek one is now a lost cause, and will trade down even more, here is what you can expected, courtesy of William Banzai.
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Soaring on bullshit!
Don't worry it will collapse by morning!
People should not fear Skynet.
As we can all now plainly witness, even semi-intelligent humans will have a huge advantage over the machines in terms of lag time when responding to real world events.
Maybe the inherent flaw in Skynet is that it vastly underrates the ability of humans, and especially politicians and economists, to engage in prolific bullshit.
I wonder if Skynet has been able to cull any reality from January's NFP report as provided by the Bureau of Lis & Bullshit.
I think the winning trade that's been in front of our eyes all along is to fade Skynet.
It should be summed up as, instead of Heads I win, tails you loose - Gold, I win. Gold, you loose. 2% inflation - come suck my nuggets!
gold is up one dollar in us terms on the NEWS!!!!! Someone has left the gold computer the last week its flatlining.......We are on AUTOPILOT Bitchez!!!!! Get your parachutes ready
Gold has op/ex to deal with next week, and the fact that the bailout rumors will be refuted, they haven't even had the damn press conference yet.
In other news, Trichet looks pretty cool in a Teddy Boy.
That's his theme song. Tender. Get it?
From AP: > The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels
How can it be a "deal" if the details haven't yet been worked out? Oh, it's one of those kinds of "deals". I getcha. No hand-shake, but a hand-shake promising to hand-shake on the "deal" once it is worked out. Great photo-op of the hand-shake of the promise to shake hands. Got it?!
ONE MONTH TO MARCH 20TH.... tick, tock....
it'll be like those gov't shutdown budget deals that Dole and Gingrinch ironed out with clitton only to hear Al gore on the radio on during their drive back up Penn denying the whole thing.
Greece will reneg on a deal as soon as they agree to one...they are GREEKS. They are NOT in the business of honesty or trying to actually work.
lQQk!
it's nessie!
i see nessie!
"How many fingers, Winston?"
Four. I want to see five.
+2 oh so good
..
Well, despite all the naysayers, The Associated Press, that bastion of fine journalistic reporting and parsing of detail, is reporting that this is a done deal, and even that Greece received "$172 billion in extra bailout loans."
Provisional Deal for $172 Billion Bailout for Greece By THE ASSOCIATED PRESS 1 minute agoBullshit!...errr.....I meant....Bullish!
Look, I'm a robot! I'm a row-bot! Row-bot....row-bot.....
"Don't worry it will collapse by morning!"
Um, no, this will bleed and fester for a good week before we see the real consequences.
Oh I agree with you, this will most definitely collapse by morning or the latest afternoon. Because nothing in this for one is different from what was pushed last summer. And two, you can bet your last dollar that a big chunk of the debt holders won't go for this bond reduction. They have a board and investors to think about for one and how can they go back to their fund and say they did good corporate work when they paid for insurance on the bond and they didn't take it because??????? They didn't take it because they where warned that they would get nothing which is a lie unless AIG and the other financial firms who sold insurance to these bonds (most from the US) are insolvent. They never said that or will say that because that would put in danger almost all bonds on this planet that these companies insured, they just hinted.
This Greek barge is sunk
..the Eurocrats are still re-arranging the deckchairs and, stiff upper lip, the band of civil servants plays on like all will be well
..the jobless (worthless) in Brussels and Strasbourg should over-take and out-strip Greek 'austerity' (lay-offs of lay-abouts) in the not too distant future.. crying shame that
Tweet from minutes ago that 'Private Debt Holders' will be "Asked" to take a 53% haircut on holdings.
I cannot see that happening, at all.
EDIT: More from CNBC
"Private sector holders of Greek debt are expected to take losses of up to 53.5 percent on the nominal value of their bonds as part of a debt exchange that will reduce Greece's debts by around 100 billion euros.
Previously they were expected to take a 50 percent nominal writedown, which equated to around a 70 percent loss on the net present value of the bonds.
The debt swap will be financed in part via "sweeteners" that will be paid to the private bondholders, who will also get 30-year bonds in exchange for the bonds they give up."
Someone explain to me HOW this does not trigger a 'Credit Event'?
Apparently it doesn't trigger a credit event because they say it doesn't....pretty simple really.
Looks like I picked the wrong week to quit Qualudes.
It looks like a lot of 'investors' picked the wrong week to swim naked.
No credit event because it was "voluntary"
This must collapse the whole CDS market. Who will pay good money to buy an insurance product that doesn't pay out when the product it is supposed to be covering fails?
It's like if I buy fire insurance on my house which burns to the ground and the insurance company saying it is still actually there so not claimable. Or, hey, the doorpost is still there so not totally destroyed. What sort of bizzaro world is this? I feel like I'm taking crazy pills.
http://www.youtube.com/watch?v=wC8y0HoopVE
Hey, if nobody calls the bluff, we can all pretend it's real!
No insult intended, but in this "radical free market", This fundamentalist "capitalist system", These wanna be gangsters just do as they like. Law be damned.
It isn't about the law today you see. It is about the "transformation" of law as we react to the "changing environment".
It is a criminal gang.
What else did you expect?
The 'free' market has failed my ass. These sick mobsters ought to be made into hotdogs and sold at OWS protest.
This is the antithesis of free market. How are you defining "free market"? Central governing authority CYA=free market?
From CNBC -
http://www.cnbc.com/id/46459122
This time it is different.....until the next time.
On a scale of world priorities, keeping Obama away from a 2nd term in office still dwarfs everything else including Greece!
I'm sure Mittens will do a splendid job of keeping teh gays from marrying and slashing taxes on magical uderwear.
this is bullish Silver...
At least till NY open
that should be bullish for us stocks
With regard to the FX chart; shortcovering anyone? No?, how about tennis.
Central Banks can continue their policies to keep the Status Quo for only so long. The rubber meets the road with food and oil prices worldwide. Bernanke and his ECB counterparts know that the policy of QE and rewarding the same players that caused this mess and propping up Stocks does not help the average person that doesn't own much of these assets. Serious erosion in standards of living in the Western economies will spell the same social ills we are seeing in Greece. Just because they make a deal to keep the Status Quo happy will not quiet the masses. The middle class is being gutted. Every dog will have his day.
Fucking Ground Hog Day again!
aint that thr truth!
I'm sick and tired of popcorn - default now bitchez!!!
You should study tantric sex...the wife will thank you. This is nothing more than tantric sexual economics.
Can one perform tantric sex after having zionists convince pediatricians to hack and slash our penisis? Yes I am angry that my wang was cut without my say in the matter.
Let's be honest... You are more bothered by the prospect you lost length...alas it was never there.
No I am far more concenred about losing 90% of my natural sensitivity.
Oh god what a freak.
Cut wangs are much better looking and preferred by women rather than a smegma filled sausage casing. Nasty.
Oh god what a freak.
Cut labia and clitorus are much better lookign and preferred by men rathern then protruding, unsightly skin folds. Nasty.
Women throughout history seemed to do just fine with smegma filled sausage casings(do you bathe?) BTW you might want to inquire with your European cousins as to if they have such issues?
btw Canada Australia and New Zealand recently banned circumcision(for non medical reasons) and Eruope has steadly held an under 5% circumcision rate.
Cutting off parts of peoples bodies without their consent is wrong.
Penile bowenoid cancer rate, and juvenile Urinary tract infection rates are higher in uncircumcised males. And you are breaking covenant with God.
well in that case, cut kids penisis, despite the fact that close to 200 children die from botched circumcisions a year.
lots of women die from breast cancer, why dont we just remove all the breast tissue from new born girls? breast milk is passe anyhow we still have formula, so they really arent needed.
Say that again, I got lost staring at your icon.
Have you inquired about the possiblilty of a skin graft?
People stretch the skin. Grafting unlikely to be functional due to restrictive scarring. Ask John Bilbo Bobbit, someone stole his precious.
They say our love won't pay the Krauts,
Before it's earned the money's gone to bailouts.
I guess that's so, Goldman's running the show,
But at least I got a piece of concrete to throw.
Babe. I got you, Babe. I got you Babe.
robos FTW
Drama goes up, trust goes down.
You're making the assumption that there was trust to begin with.
sec should charge news agencies with mkt manipulation for false and misleading statements
It would be nice if the algos would scan beyond a headline.
Let the algo's scan this... Our debt...true debt is about the same as Greece all in.
I'm having a really hard time as a libertarian not wanting to shut the fuckers down.
But I show restraint. They will destroy themselves just like the free market does.
Your green/red thing ain't working--green anyway. Milestones
sec? you mean the SEC? OH, God knows they wouldn't want any false and misleading statements. Are you for real?
Instead, the news agencies are charging the SEC for the service.
All Newspapers are run by Farsatronic Software a division of Skynet Inc
Germany already talking about not backing this deal, Bitchez!
yep, 60 pips on rumor and 30 pip drop when Germany says, "F-off!". As always, a 30 pip win for the shithead banking crooks.
Stupid f'ing Germans never learn. All talk ,no action. And I love Germany.
link?
Talk is like poo.
Everybody produces it, and no matter how you may attempt to make yours seem different, It all still smells like SHIT.
Yeeee haawhhhhh
Look, I'm a robot! I'm a robot!
Hah hombres you call EUR/USD 1.32xx and S&P +6.x soaring ?!?! WTF?!?! Give the fools some time to read through the "statement" :))) eh?!
I would love to have control of what comes out of Reuters and the associated press. I would pump out headlines that would just fuck with the robots. They wouldn't know which way to turn.
Now THAT is something that would really stir the pot. Anonymous?
pods
I watched Vendetta today. Needed a little pick me up.
why not, they've already made it a battlefield and a crime scene
if not creative control then at least some disruption to the careful choreography and fraud.
EURUSD approaching 1.33
/NQ up 10+ points since the news, because we all realize that iPad shipments were hanging in the balance
We've been at 1.33 not long ago only to back off again!!! Nice knee jerk reaction though, bet won't hold for long!
TVIX COMPANEROS!
yay, just put my DOW 13k hat on...then took it off and shit on it.
It's a hat...much better to shit in...
And there were laughs all around ..
sore loser channel right here
Market is back down to where it was before the announcement., Nothing gained, just smoke!
It's a sled...there, now go away.
but given his post, it should be a joint
Fake is the new black.
Fuck this game.
Absurd.
congrats to those frontrunning the headline. anyone know how to join this program? no info/signup on the reuters site.
As Carlin said, it's a big fucking club, and you and me ain't in it!
pods
"It's called the American Dream, cuz you have to be asleep to believe it."
Boy, we sure could use Carlin and Hicks around these days. RIP
so they needed 245 billion Euros, and only got 130!!! And now they aren't sure they'll even get that!
Acid flashback? I dunno. I think there was a Star Trek TNG episode where they kept going in a loop in time. Mr. Data, get us the hell out of here.
I believe it was referred to as a causality loop, and even Mr. Data did not get it until he was radically modified in some matrix like manner. Glitch in the program - Deja Vu!!!
Hasn't the Greek-fuelled imminent collapse been coming since 1,100 S&P? *yawn*
At the cost of printing 1 trillion of euros?
I don't know if you know, but "clinically dead" human beings have their organs still working via battery at the hospital, but "brain dead".
All Europe is brain dead right now. Let's see how long will the battery of euros last.
The market is dumb. Algos gamed both the AUD and EUR at the same time, sold the AUD 2cents down, then went nuts on the EUR. AUD then rebounded.
Confused and panic buying. This market is going to be flushed soon. Just crazy.
"In individuals, insanity is rare; but in groups, parties, nations and epochs it is the rule" – Nietzsche
Uhm, hmm.
Ja, der alte Friedrich, immer am spass haben :)))!
I pasted it on google translate.
Danke schön
Kudos at least you tried :))) my mom was German god bless her (bailout) heart :)))!
God bless her, for sure!
I actually studied german on my own a long long time ago. Too tough.
Ach; there's no need to listen to the old one. We are all so modern. We wear suits and ties. We are rational. We deny the "Jewish" psychology. We have no dark emotions. We have a leader. Our leader will see us through! The will is everything! The triumph of the will! "The will of the people is supreme"; it doesn';t matter if the Euro is worthless; we will triumph over all! Pessimism is a crime against the State! And then---and then; the awful time when the ears cannot hear, and the buildings are falling into the street and the sky is on fire; what went wrong? what went wrong?
Even crude oil had a jump. Insane.
Nietzshe is right. In fact he was right about a lot of things. But the market is now insane, a viral insanity. How do you trade this? Well, the insane usually collapse, the EUR meltup and the AUD meltdown (then meltsup) is a warning sign (major flash crash coming?) right there.
But back to insanity, I can't see this going on and on and on...it's gotta give. Hence the flush. When? I dunno. Maybe soon. Just watch your top ranges. Some nut may want to join the party and run a long position. He will probably be killed. This market looks frightening.
THERE IS NO WAY TO TIME INSANITY.
When they leave, they just leave at the same time and they will.
Me think TVIX at 15 bucks or less is just the cure,eh?!
if the s&p retests feb 5 lows at 1343, breaks that, we have a correction. doesn't. gotta set shorts from the top again. but the tvix and vix are scaping along lows, which is bearish signal.
The best indicator of market activity is a quick glance at options. These - more than any stock or sector -represent future trends. Thus, when silver peaks, the volume on AU put options sky rockets. (Option sentiment has spiked upwards)
That is correct in "normal market". This is no market. This is just primary dealers = plunge protection team trading with each other like in 1929.
- They will either run out of money - no more fed printing when congress orders them so
- Or they will end up buying up the whole market.
Since there are no more suckers, either way will lead to sudden collapse, 1987 style.
So besides these dumb announcements and meetings, what are the actual real barriers that must be crossed before said 130 billion can be distributed? Does the bailout have to be ratified by each country or something of that nature?
They are celebrating the weaker dollar at the Fed right now.. all is proceeding as planned.
The German financial officials are all crying in their beer.
Exactly! This is why the Krauts won't go along with this deal!
Rally never gained any traction, already falling back. Idiot robots.
Yep, already backing off hehehehehe what a joke and I hoped for some good laughs, oh well not what it used to be anymore, go figure :((!
70% haircuts mofo's and this is not going to trigger CDS's and CAC's????
It's not a default, it's a haircut. C'mon! Why aren't you guys happy? Rally time! Rally time! Ooha-oowa!!! Ooha-oowa!!!! Come on, bitchez! Oohwa-oohwa!!!!
When you end up a eunich it doesn't mean the circumcision was successful...
Thats gotta be worth +40
Where are the EUR 130 Billion coming from? How is Greece going to cut the deficit to 121% of GDP?
ahhh, bingo!
"How is Greece going to cut the deficit to 121% of GDP?"
Why, with HOPE-N-CHANGE Unicorns, of course!
The United Federation of Planets should be arriving with them just any day now.
Just ask anyone in the newsrooms at NBC/MSNBC/CNBC!
Sssshhhhh, ignore the man behind the curtain, all is well in Oz.
Wait wait wait Golovia...they're cutting the deficit to 121% of GDP? Here I thought it was the debt. Well, shit, even the Greeks can handle a deficit of 121% of GDP.
I would love a permanent sustainable subsidized deficit of 121 percent of my gross domestic product.
As posted in other blogs, the original bailout was with borrowed money (or was it leveraged?) This one will require actual Euros - not an accounting trick. And since Germany is increasingly hesitant about throwing its money into the black hole of PIIGS debt, it can only come via printing (however you want to phrase that).
Tomorrow, Timmah battles the Algo Machines from Hell! Muahahahahaha!!!!!!
If Germany said no, how does this proceed?
It will promptly move to the next rumor du jour
What's on the menu at next week's meeting? Muah????
It doesn't!
Through the wormhole, on a left-handed corkscrew. this is no longer a rational process. It is human beings at their finest; believing things. they are very good at believing things.
William, just when I think you can't top yourself...
WB, who gets the Brazilian in the Banzai Boutique?
Don't say LeGarde, don't say LeGarde, don't say LeGarde, don't say LeGarde....
Merkel?
no mullet! or the Dyke aka I hate Men butch haircut
lol
"The Ceaser."
Where's the Obama cut ? And don't say Corzine has his cut :)
That must be Trichet, now that he's retired, he opened a hair salon
I am so ready for this shit to be over.
I guess Trav doesn't like this.
cause he didn't blame it on "the blacks"
Well then you're readier than 98% of the population, who don't even know that "something" is going to be over. "We who are about to die, salute you Caesar".
Over/under on Euphoria is 90 minutes.
So what happens when the market opens tomorrow? The mainstream media keeps saying a deal is reached? I still dont get it? Did the bond holders agree to take a haircut? Could someone please explain thanks!
The best thing to understand is that you need to be out of "the market". Just don't play anymore. Buy bank FDIC insured CDs. Buy bonds. Buy rental real estate for Section 8 vouchers.
There is no longer a stock market. It's no longer a place where people try to find value in companies. Now it's a place where computers manipulate prices and the companies themselves are irrelevant.
In the Obama/Soros-World Banker Bailouts Economy, it's best to go long in Hookers, Blow, And Booze.
Anything that can be purchased with an EBT/SNAP card.
In regards to FDIC protection:
http://news.firedoglake.com/2011/10/18/the-next-bailout-bofa-moves-deriv...
And, you might want to keep an eye on this list, just to make sure that your bank is not on it one Friday....
http://www.fdic.gov/bank/individual/failed/banklist.html
In regards to Section 8 housing, are you implying that one should be a land lord?
Have you ever spoken to someone that was or is a land lord, and how often the tenants have more rights than you?
And bonds... Well, things did not go as planned for GM bond holders, didn't it.
In short, there is no safety.
There is a "market" but it's the one where ignorant pigs go to get slaughtered
"So what happens when the market opens tomorrow?"
Market opens over 13000 and the CNBC talking heads gush over each other and get so excited they spit in each others face (especially Cramer and Pisani).
"Market opens over 13000 and the CNBC talking heads gush over each other"
While praising the MEdia MEssiah, and doing the Obama Bump on live TV.
Euro soaring? Try EVERYTHING. Everything is soaring right now.
Riots in Greece in the next 24 hours.