Finland Throw A Wrench In Europe's Rumormill
Because if left unchecked Europe will likely talk the algos trading the market with flashing read headlines to 36,000, here comes Findland to put some things in order
- FINNISH PM KATAINEN REJECTS PROPOSAL TO USE ESM AND EFSF MONEY TO BUY GOVT BONDS
Yes, the same Finland who ten days ago made it perfectly clear that the EFSF is also subordinating, when they demanded collateral from Spanish banks courtesy of negative pledge language.
Finland will demand collateral for its share of emergency loans to shore up the Spanish banking system should the money come from the euro-region’s temporary bailout fund, Finance Minister Jutta Urpilainen said.
“It remains undecided whether the bailout will be granted via the temporary facility, in which case Finland will require collateral,” Urpilainen told reporters in Kokkola, Finland, yesterday. The other alternative is to grant the loan through the European Stability Mechanism, the “permanent crisis mechanism, which will provide better security for taxpayers” and won’t result in demands for extra guarantees, Urpilainen said.
Still dreaming the Spanish bailout will be pari passu to bonds and not subordinate anyone? Then wait until Germany pulls the negative pledge card next and the whole European house of cards tumbles (just as Germany wants), and comes begging to Merkel for any bailout on any terms, all the while pushing EURUSD to parity, generating record profits for all German exporters. Just as Germany planned all along.