This page has been archived and commenting is disabled.

Initial Response To Merkel Conference

Tyler Durden's picture




 

From Peter Tchir of TF Market Advisors

Plan seems long on big picture idea, short on details and short on other member states being consulted. Feels like more concrete, immediate action, was already priced in. If anything, seems like they are going to start taking money from banks to pay for bailouts of banks. Makes sense in a weird way, if you believe banks should be bailed out, but don't think that was the "support" the market was looking for. With all the short covering, and high expectations, I think market will end up the day disappointed.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/16/2011 - 12:23 | 1565685 Everybodys All ...
Everybodys All American's picture

Who is going to print? The Germans or the French or both.

Tue, 08/16/2011 - 12:25 | 1565704 SheepDog-One
SheepDog-One's picture

Seems the French can now pile into UST's since their AAA+ US debt rating confirmation.

Tue, 08/16/2011 - 12:28 | 1565728 Everybodys All ...
Everybodys All American's picture

A euro bond would actually put pressure on the Treasury if it were ever created. Because the Chinese and others would find it as attractive if not more so. At the very least a way to diversfy from US T's. I'm not so sure the Bernanke wants that competion.

Tue, 08/16/2011 - 12:32 | 1565750 anynonmous
anynonmous's picture

both sark and merk are crystal clear euro bond a non starter

Tue, 08/16/2011 - 12:27 | 1565722 trav7777
trav7777's picture

everyone

Tue, 08/16/2011 - 12:29 | 1565732 SheepDog-One
SheepDog-One's picture

Print faster please! Hasten the head-on train wreck!

Tue, 08/16/2011 - 12:23 | 1565688 TradingJoe
TradingJoe's picture

Something's always gotta give :)))!

Tue, 08/16/2011 - 12:23 | 1565692 Boilermaker
Boilermaker's picture

Feels like more concrete, immediate action, was already priced in.

Huh?  Market didn't even move.

Tue, 08/16/2011 - 12:27 | 1565723 ZeroPower
ZeroPower's picture

EURUSD bumped higher and some French CDS were lifted (2x) but ya, nothing crazy like last week.

Tue, 08/16/2011 - 12:28 | 1565725 SheepDog-One
SheepDog-One's picture

Well, markets have all that 'priced in' money theyre sittin on.

Tue, 08/16/2011 - 12:23 | 1565693 entendance
Tue, 08/16/2011 - 12:27 | 1565697 SheepDog-One
SheepDog-One's picture

We've entered end game- banks cannibalize each other, no Euro printfest, QE3 looks like a fart in a hurricane $300 billion. Time to get out.

Tue, 08/16/2011 - 12:43 | 1565802 Josh Randall
Josh Randall's picture

Quck - take a memo to WillamBanzai: movie poster should read "Around the world in 80 days" - pitting Helicopter Ben against Angela in her Zepplin, and Nic in his Hang Glider -- bags of cash are no object, just a matter of whose Ponzi in the sky can stay afloat longer  

Tue, 08/16/2011 - 12:27 | 1565698 slackrabbit
slackrabbit's picture

 

This is the funniest press conference I have ever seen.

They both say nothing and it’s damn obvious from their confused looks they have absolutely no idea what to do.

Damn this is entertaining - it’s like a watching a 5 years old doing show and tell....except the kids would know more

 

 

Tue, 08/16/2011 - 13:26 | 1566017 AlaricBalth
AlaricBalth's picture

Au royaume des aveugles les borgnes sont rois.

Tue, 08/16/2011 - 12:26 | 1565703 machineh
machineh's picture

Prominently missing was a Bernankean promise to keep euro rates at zero till mid-2013.

No free money? Then I'm checkin' out! SELL EVERYTHING!

Tue, 08/16/2011 - 12:25 | 1565706 pendragon
pendragon's picture

i'm guessing trichet's got his finger on the buy button

Tue, 08/16/2011 - 12:28 | 1565729 machineh
machineh's picture

He seems to have mistaken his sphincter for the Enter key.

Tue, 08/16/2011 - 12:29 | 1565731 sbenard
sbenard's picture

Is this news what hit ES?

Tue, 08/16/2011 - 12:30 | 1565739 SheepDog-One
SheepDog-One's picture

Guess so...not much of a 'hit' though at -5 considering ES is up 100 in 3 days.

Tue, 08/16/2011 - 12:31 | 1565742 topcallingtroll
topcallingtroll's picture

The market apparently supports moral hazard in this case.

Tue, 08/16/2011 - 12:32 | 1565745 janus
janus's picture

my practicing practicing has it down over three hundred at the end.

 

Tue, 08/16/2011 - 12:33 | 1565755 SheepDog-One
SheepDog-One's picture

All is well though, as the only firm news from the meeting is the idiot Von Rompuy will be EU president for 2 more years.

Tue, 08/16/2011 - 12:38 | 1565777 pendragon
pendragon's picture

i think the belgians have a word for van rompuy- anodin

http://www.youtube.com/watch?v=Fyq7WRr_GPg&feature=player_embedded#!

Tue, 08/16/2011 - 13:01 | 1565881 Sudden Debt
Sudden Debt's picture

THAT GUY IS THE BIGGEST IDIOT ON EARTH!!

HE WRITES UNREADABLE POEMS GODDAMEND!!

HE'S THE BIGGEST RETARD WHO LIVES OUT OF THIS PLANET!

Tue, 08/16/2011 - 12:33 | 1565756 Theta_Burn
Theta_Burn's picture

Faz spiked beautifully

Tue, 08/16/2011 - 12:34 | 1565761 Mae Kadoodie
Mae Kadoodie's picture

Has anyone ever been to that city in Germany,  oh yes it's called Nothingburger.  I believe it's on the outskirts of Hamburg.

Tue, 08/16/2011 - 12:36 | 1565767 SheepDog-One
SheepDog-One's picture

Is that near Shitburger?

Tue, 08/16/2011 - 12:34 | 1565763 apberusdisvet
apberusdisvet's picture

Sarkozy:  "I'll show you mine if you show me yours"

Merkel:  " once you've seen Ben's, there's no other that can compare"

Tue, 08/16/2011 - 12:37 | 1565769 anynonmous
anynonmous's picture

what's all this golden rule nonsense they are talking about

these two monkeys make Obama seem like Winston Churchill

 

just now Merkel

 

"Had people been more responsible in the past we wouldn't be facing these problems now"

Tue, 08/16/2011 - 12:36 | 1565770 Joebloinvestor
Joebloinvestor's picture

Well if you buy or sell stock in EU, you are gonna be taxed.

 

Maybe if you deposit or withdraw from the bank?

 

http://www.bloomberg.com/news/2011-08-16/france-germany-to-propose-finan...

 

Tue, 08/16/2011 - 12:39 | 1565791 SheepDog-One
SheepDog-One's picture

Thats it, massive new regulations, penalties, and sea of red tape will certainly fix markets no one trusts at all. Nice work.

Tue, 08/16/2011 - 12:38 | 1565782 SheepDog-One
SheepDog-One's picture

Huh...well maybe this -100 point DOW plunge is the 'fear and panic' catalyst that will allow Ben to announce his paltry $300 billion QE that has already been priced in? ZZZzzzzzzzz.

Tue, 08/16/2011 - 12:39 | 1565789 Bohemian Clubber
Bohemian Clubber's picture

that fitch rating on US debt was a nice kabuki piece, now that was superb acting. Move along sheeple ! goddammit MOVE!

 

Tue, 08/16/2011 - 12:43 | 1565801 Toe Cutter
Toe Cutter's picture

Finally the EU is getting their own Super Congress to make it appear they are going to do stuff. They are so behind the times.

Tue, 08/16/2011 - 12:45 | 1565811 anynonmous
anynonmous's picture

Merkel

"we need to practice what we preach, for sometime now in Europe we have discussed the use of harmonized indicators, the markets are telling us that if we want a common currency we need more harmonization"  

"we will tell Rumpel that the golden rule should be put into effect in 2010"

Sark now talking about a franco german economic area

 

 

 

 

 

Tue, 08/16/2011 - 12:45 | 1565817 CTG_Sweden
CTG_Sweden's picture

To me, it seems as if countries in southern Europe are pretty confident that they will get their money from Germany one way or the other. If they don´t get Eurobonds they just may force Germany to give more money to other countries by a majority decision in the EU. As far as I can understand, it is now possible for 55 % of the EU countries to force a minority to give their money to the majority. In the past, it took a unanimous vote to do so.

 

Perhaps some people now also will argue that the EU now needs to become one country so that the euro also can become a credible reserve currency so that Europe also can print money like the US for while in order to cover budget deficits.

 

I suspect that it will be better for Sweden if Germany and the Netherlands voluntarily pay for the southern European countries debt so that non-euro EU-members don´t have to pay as much.

 

I think that there is no doubt that the ruling parties in the EU want the EU countries to merge into one country. The debt crisis and the possibility to print money may serve as a “rational” argument for that when trying to persuade hesitating politicians to agree.

 

However, I doubt the euro will be able to serve as a reserve currency for a long time. As China and other Asian economies grow the possibilities to use the euro and the dollar as reserve currencies will probably shrink. When Europe has merged into one country it will might be too late for the euro as a 2nd reserve currency. But I don´t think that the European leaders will care once they have got their completely unified Europe.

 

I think that the best solution for countries in Northern Europe would be that they paid a fair amount of money for public buildings etc in Southern Europe and that the Southern European countries used that money for reducing their debt. If Spain and other countries would hurry to sell everything to the highest bidder right now the result would might be fire sale prices. So that wouldn´t solve any problems. But it is outrageous to force German, Dutch and Swedish tax payers to pay for Spanish debt without any securities, especially if we consider the hundreds of billions of dollars that already has been given to Southern Europe.

Tue, 08/16/2011 - 12:49 | 1565826 anynonmous
anynonmous's picture

sark

 

"The french have  enormous respect for our German friends, in history we have been enemies but now we must not be afraid of this rapprochement"

 

merkel

"I think it is interesting that when sark and I engage in discussions we can make use of ideas from the south of Euorpe or the north, we can build a joint vision in the context of globalization but  there are no gaurantees but since the 19th century we have generally  known periods of growth, we need to unite if we want to reach our goals"

Tue, 08/16/2011 - 12:51 | 1565846 AlaricBalth
AlaricBalth's picture

Looks as if they are proposing a variation of the "Tobin Tax". It is a transactional tax on that would look to curb speculation. It would require cooperation from the major developed countries.

 

Tue, 08/16/2011 - 13:01 | 1565884 machineh
machineh's picture

In the short run, a coming Tobin tax is an incentive to SELL NOW.

Save the HFT algos! With a Tobin tax, they'll be put out of business in Europe.

Tue, 08/16/2011 - 12:53 | 1565856 anynonmous
anynonmous's picture

Sark

"We are heading for a confederation"

Tue, 08/16/2011 - 12:55 | 1565865 Racer
Racer's picture

"We are closely monitoring the situation and will act ... uh, maybe, sometime, then, whenever........uh"

Tue, 08/16/2011 - 13:05 | 1565906 Sudden Debt
Sudden Debt's picture

and as a European I already know THAT EVERY FUCKING LEMMING WON'T EVEN REACT ON NEWS LIKE THAT BECAUSE NOBODY GIVES A RATS ASS ABOUT POLITICS!

 

SO:

IN EUROPE WE GET A UNELECTED PRESIDENT

IN AMERICA YOU GET A SUPER CONGRESS THAT DOESN'T HAVE TO ANSWER TO ANYBODY!

IT LOOKS LIKE TYRANY, IT SMELLS LIKE TYRANY, IT TASTES LIKE TYRANY

HELL IT MIGHT EVEN BE TYRANY!

Tue, 08/16/2011 - 13:15 | 1565960 CTG_Sweden
CTG_Sweden's picture

To me, it seems as if countries in southern Europe are pretty confident that they will get their money from Germany one way or the other. If they don´t get Eurobonds they just may force Germany to give more money to other countries by a majority decision in the EU. As far as I can understand, it is now possible for 55 % of the EU countries to force a minority to give their money to the majority. In the past, it took a unanimous vote to do so.

 

Perhaps some people now also will argue that the EU now needs to become one country so that the euro also can become a credible reserve currency so that Europe also can print money like the US for while in order to cover budget deficits.

 

I suspect that it will be better for Sweden if Germany and the Netherlands voluntarily pay for the southern European countries debt so that non-euro EU-members don´t have to pay as much.

 

I think that there is no doubt that the ruling parties in the EU want the EU countries to merge into one country. The debt crisis and the possibility to print money may serve as a “rational” argument for that when trying to persuade hesitating politicians to agree.

 

However, I doubt the euro will be able to serve as a reserve currency for a long time. As China and other Asian economies grow the possibilities to use the euro and the dollar as reserve currencies will probably shrink. When Europe has merged into one country it will might be too late for the euro as a 2nd reserve currency. But I don´t think that the European leaders will care once they have got their completely unified Europe.

 

I think that the best solution for countries in Northern Europe would be that they paid a fair amount of money for public buildings etc in Southern Europe and that the Southern European countries used that money for reducing their debt. If Spain and other countries would hurry to sell everything to the highest bidder right now the result would might be fire sale prices. So that wouldn´t solve any problems. But it is outrageous to force German, Dutch and Swedish tax payers to pay for Spanish debt without any securities, especially if we consider the hundreds of billions of dollars that already has been given to Southern Europe.

 

(This doesn´t mean that I think that printing money is generally good for the United States. I think that it is risky and that the inflation also harms American consumers and small/medium-size savers. But I think that printing money currently stands out as a more attractive solution than raising taxes or cutting domestic spending. The only solution that probably would be better for America is eliminating military spending abroad, raising import duties and minimizing unnecessary supply to the labour market, i. e. something similar to what Pat Buchanan advocates.)

Tue, 08/16/2011 - 13:37 | 1566062 Smiley
Smiley's picture

Great, how long till we start seeing "container people" coming in from France and Germany now?

Tue, 08/16/2011 - 14:07 | 1566202 greek 83
greek 83's picture

American dollar is and will continue to be the reserve currency.What matters,in terms of global balance of power,is control on world resources industrial capacity  and powerful army.Note that both Britain and American had all of them as reserve currency countries.

Dollar's position is being questioned because USA is actually a nation that imports both resources and industrial products in strike contrast with say 50 years ago.Still USA and its "allies"control most of world's oil resources primarily due to american armed forces.In other words dollar's position depends on the power of american military,the money spend on weapons protect dollar's status mora than anything else.

 

At this point no other currency can claim dollar's place,both eurozone and china lack one thing,control of resources.China's and GErmany's industries mean nothing if they can't get their hands on resources.China's "economic miracle" would turn to a nightmare just by a slight distortion in the supply of resources.

 

In my eyes the key player in this geopolitical game is Russia.Ony Russia backing with its resources either eurozone or China(propably eurozone) can challenge dollar's and America's position.

Tue, 08/16/2011 - 14:57 | 1566379 oogs66
oogs66's picture

Nice puke in stocks not too long after this article. Thanks tyler

Tue, 08/16/2011 - 17:02 | 1566752 trx
trx's picture

Then, brothers, it came. Oh bliss, bliss and heaven:

Merkel And Sarkozy Propose New European Economic Government
Do NOT follow this link or you will be banned from the site!