Add this from Reuters to today's rumor trifecta to make the day RDA allowance of crazy pills complete:
- BRICS COUNTRIES IN "VERY PRELIMINARY" TALKS TO COORDINATE PURCHASES OF EURO ZONE SOVEREIGN DEBT - BRAZIL GOV'T SOURCE
And so in one day we have heard rumors of China, Russia and Brazil (in this case "citing a monetary official"... sure beats "unidentified Italian government sources" ahem FT) all bail out Europe, none of which will inevitably happen mind you because these countries aren't governed by idiots, although "idiots" is precisely who trades this market. See the attached chart for the kneejerk reaction to this latest headline.
BRIC major emerging markets are considering ramping up holdings of euro-denominated bonds in a bid to help European countries mired in a sovereign debt crisis, newspaper Valor Economico reported on Tuesday, citing a monetary official.
Valor reported a decision could be made at a Sept. 22 meeting of finance ministers and central bank presidents from Brazil, Russia, India, China and South Africa in Washington.
Brazil's central bank declined to comment on the story. The source in the report was not identified