Futures Jump On Second Global Bailout Announcement On Lehman's Third Bankruptcy Anniversary

Strawman-of-the-night: G7 OFFICIAL SAYS EUROPEAN GOVS WEIGHING TALF-LIKE PGM: CNBC

TALF was the Fed's backstopped loans for buying ABS (in order to improve the liquidity of the ABS markets which were apparently pricing in a fire-sale as opposed to a fundamentally terrible environment).

The ECB equivalent, we assume, will be ECB funded non-recourse loans provided to third parties enabling the purchase of Sovereign debt (which acts as collateral). If these guys can't agree on Euro-bonds, debt buybacks, or an EFSF extension, agreeing to an ECB taking all the risk and missing out on any upside seems highly intractable - but crazier things have happened.

More as we get it...

Comments

[jdelano]

That's why, hopefully, Ben will at least restrain himself to torque instead of outright QE. Market might not crash for a while yet if Germany coughs up a few more nickels for Greece, but no indication/catalyst for it to soar yet either. That's why I can't understand these mindless, blind bulls--- risk reward, the most fundamental relationship principal of investing, says stay the hell put of this market until Europe and Ben turn on the printing presses. Hardly any upside to miss out on until then while the potential downside of defaults is enormous...

[pebblewriter]

The good news is they'll be able to pay us back the money they owe.   The bad news is, they need to borrow $500,000,000,000 from us in order to do it.  This deal puts the "pawn" in Ponzi.

http://pebblewriter.blogspot.com/2011/09/worlds-biggest-pawn-shop.html