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Latest European Bailout Rumor Summary

Tyler Durden's picture




 

In the interests of sanity and reality, we thought it worthwhile to note the wild and whacky rumors and statements emanating from Europe this morning.

A growing number of politicians and bankers are admitting that perhaps, just maybe, banks do need additional capital - but clearly they do not see need to pay for it as their comrades in Europe will help:

*IMF'S BORGES SEES `SERIOUS REASONS' TO BE CONCERNED ON EUROPE

*BORGES SAYS EUROPE NEEDS TO TAKE `DECISIVE ACTION' VERY SOON

*IMF'S BORGES SAYS EUROPE'S BANKS MAY NEED EU100-200B IN CAPITAL

*BAROIN: COLLECTIVE EUROPEAN RESPONSE NEEDED TO CRISIS   :GLE FP

*BAROIN SAYS SUPPORT FOR BANKING SYSTEM IS EUROPEAN ISSUE

*MERKEL SEES IMPORTANT THAT EUROPEAN BANKS HAVE ENOUGH CAPITAL

*ECB SAYS LENDING TO BANKS ROSE EU 17.5BLN TO EU 588.8BLN

But have no fear, the Dexia situation is under control as the plan to plan is going well and this means nothing for the rest of France or French govvies:

*BAROIN SAYS FRANCE, BELGIUM WILL SUPPORT BANKS AS IN 2008

*BAROIN: DEXIA GUARANTEES WON'T INCREASE FRENCH STATE DEBT

*BAROIN SAYS MARKETS ARE PUSHING BANKS TO HAVE MORE CAPITAL

*BAROIN SAYS DEXIA DOESN'T THREATEN FRANCE'S CREDIT RATING

*BAROIN SAYS FRENCH BANKS DON'T HAVE LIQUIDITY, SOLVENCY ISSUES

*NOYER: FRANCE DOESN'T NEED BANKING CONSOLIDATION       :DEXB BB

*NOYER: NO CONCERN OVER FRANCE'S AAA IN LIGHT OF DEXIA  :DEXB BB

And that Italy downgrade - don't worry:

*NOYER: ITALY TAKING NECESSARY STEPS TO TACKLE PUBLIC FINANCES

And while banks are liquid and solvent - have no fear - maybe we should look into who 'might' need capital (stress test 3):

*MERKEL SAYS CRITERIA NEEDED TO ASSESS BANK CAPITALIZATIONS

*MERKEL SAYS READY TO DISCUSS BANK RECAPITALIZATION IF NEEDED

Oh and lest we forget Greece, where they admitted that the recession came earlier than expected this morning, it seems bigger haircuts are on their way:

*MERKEL SAYS PRIVATE SECTOR INVOLVEMENT MAY NEED TO BE REVISED

Have fun trading off these...

Source: Bloomberg

 

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Wed, 10/05/2011 - 10:02 | 1741113 snowball777
snowball777's picture

" EUROPE'S BANKS MAY NEED EU100-200B IN CAPITAL"...

...per month, indefinitely.

Wed, 10/05/2011 - 10:05 | 1741125 Gandalf6900
Gandalf6900's picture

per minute....to infinity

Wed, 10/05/2011 - 10:22 | 1741180 RemiG2010
RemiG2010's picture

We are totally screwd! I need to open a bottle of wine!

"DECISIVE ACTION' VERY SOON"  They should have acted weeks if not months ago, by kicking Greece out of the eurozone in the first place! Now is just too little too late...

Wed, 10/05/2011 - 11:41 | 1741512 JLee2027
JLee2027's picture

Merkel:

The euro area has to resolve “that the time of living above our means is over once and for all” and pursue debt reduction that will stretch over “many years,” Merkel said in a speech to members of her Christian Democratic Union late yesterday in Magdeburg, eastern Germany.

http://wallstreetpit.com/84942-quick-fix-in-europe-dream-on

 

I have a question:

How is this accomplished when you refuse to give debt haircuts to Greece and are willing to speak about new bailouts to the banks? LMAO.....

 

Wed, 10/05/2011 - 10:03 | 1741115 Drag Racer
Drag Racer's picture

when is this thing over, I gotta pee...

Wed, 10/05/2011 - 10:07 | 1741131 Chris Jusset
Chris Jusset's picture

The FIRST domino needs to fall ... and then the others should topple in rapid succession. 

Wed, 10/05/2011 - 10:10 | 1741142 wombats
wombats's picture

It is time for the IMF and ECB to eat their peas...then they can go pee.

Wed, 10/05/2011 - 11:26 | 1741450 DosZap
DosZap's picture

when is this thing over, I gotta pee...

GO ahead, I'll hold yer place in line..............otherwise you will be in renal failure,have gout, and an exploded bladder.

Oh, and a BIG pool, w/ soaked pants.

I have never seen a BIGGER clusterfoxtrot, I believe they are NOW even outdoing the Fed!!!!.

Some one!!!!!!!!!!! Pleases shoot me, and put me out of my misery,this is worse than taking a 3yr old to Toy's R' Us, and telling them PICK just ONE toy.

Wed, 10/05/2011 - 10:04 | 1741121 Racer
Racer's picture

If you have a large position you want to offload, you need greater fools to sell to...

hence all these 'rumours'

Wed, 10/05/2011 - 10:04 | 1741122 Popo
Popo's picture

IMF sees reasons to rape Europe's taxpayers for the benefit of the elites.  News at 11:00

Wed, 10/05/2011 - 10:12 | 1741149 GeneMarchbanks
GeneMarchbanks's picture

US taxpayers as well. Fixed.

Wed, 10/05/2011 - 10:05 | 1741123 GeneMarchbanks
GeneMarchbanks's picture

Let's just extend the short ban indefinitely...

Wed, 10/05/2011 - 10:06 | 1741126 Gandalf6900
Gandalf6900's picture

sorry I think they already did that

Wed, 10/05/2011 - 10:06 | 1741127 Racer
Racer's picture

So serious reasons to be concerned and carefully monitoring the situation by the talking heads  is a reason to buy? Hmmm...

Wed, 10/05/2011 - 10:08 | 1741136 unum mountaineer
unum mountaineer's picture

how many unfounded market moving rumors does it take to get to the center of a tootsie pop? 

Wed, 10/05/2011 - 10:13 | 1741151 RobotTrader
RobotTrader's picture

The only thing that matters now is "making your year"

Doing it in the 4th quarter alone.

That means every beaten down junker play is going to be bought with the utmost ferocity.

Just look at the crap moving today:

JNPR, ANR, BTU, FSLR, AKAM, etc.

Wed, 10/05/2011 - 10:19 | 1741173 Caviar Emptor
Caviar Emptor's picture

You can always hope. But the issues are much larger this time. 

Wed, 10/05/2011 - 10:33 | 1741233 snowball777
snowball777's picture

The window dressing to end all window dressing.

Wed, 10/05/2011 - 10:14 | 1741152 LookingWithAmazement
LookingWithAmazement's picture

Better than expected job growth September US. No collapse.

Wed, 10/05/2011 - 10:25 | 1741202 tekhneek
tekhneek's picture

Funny how that always seems to work out when you set your expectations so fucking ridiculously low that a labor force of infants is bullish.

Wed, 10/05/2011 - 10:15 | 1741153 Kina
Kina's picture

Very obvious from the tenor of all that crap is that they are not able to do anything. Just a room full of inmates at an asylum chatting among themselves.

Wed, 10/05/2011 - 10:16 | 1741162 willien1derland
willien1derland's picture

ECB SAYS LENDING TO BANKS ROSE EU 17.5BLN TO EU 588.8BLN

Is it only me or is anyone else uncomfortable with that quote?! That is a mere 33.65x increase!

If this is the case how does the ECB sterilize this action?

 

 

 

Wed, 10/05/2011 - 10:22 | 1741188 CapitalistRock
CapitalistRock's picture

No it's not. Read it again carefully.

Wed, 10/05/2011 - 10:18 | 1741164 Caviar Emptor
Caviar Emptor's picture

Each new wave of bank bailouts is not without a deep, non-monetary cost: as the public (taxpayers, sovereign govs) pays for the costly mistakes of the banks/WS, the cost to society in terms of jobs, economic livelihood, future prospects and debt ratings keeps getting dimmer. And in truth the bailouts have only required more bailouts later as they have started a vicious cycle of debt contagion, reduced economic credibility and mis-allocation of economic resources away from the productive economy. 

This round of bailouts is not being taken lightly: public awareness is already high and unrest is rising fast. Won't take a big match to start a fire this time. 

Wed, 10/05/2011 - 10:20 | 1741177 CapitalistRock
CapitalistRock's picture

People who keep asking, "When is it over?" might need to read It's Different This Time.

It's never over. It morphs. The restructuring, promises, missed deadlines, crying, pain, etc. will go for many years.

The money printing will be stepped up MANY times and always come with a promise and sincere belief that this is the last time. The fiat money holders will lose faith very slowly. It will not happen at once. Many will convert back and truly believe a recent debt restructuring made the fiat system work again. Only to be disappointed later.

Your gold and silver value will be volatile but just fine. Watch for laws preventing you from storing value in gold. Use as a buying opportunity in places where you still can. Today's interconnected markets will make it very hard to outlaw gold as we did in the 1930s (which wasn't very effective anyway).

Wed, 10/05/2011 - 10:22 | 1741187 lapedochild
lapedochild's picture

Merkel just commited German Taxpayers for recap effort... SICK

Wed, 10/05/2011 - 10:36 | 1741246 Spitzer
Spitzer's picture

doesnt mean the ECB will want to do it.

The ECB wants dollars becasue they refuse to print Euros

http://freegoldobserver.blogspot.com/

Wed, 10/05/2011 - 10:23 | 1741189 s2man
s2man's picture

Let's start our own rumor:

ZH announced today that all of its members are in discussions to refuse participation in bank bailouts.

There, that should drop the market by at least 2%.

 

Wed, 10/05/2011 - 10:27 | 1741192 heatbarrier
heatbarrier's picture

 

OK, that's Rescue Plan #42, Tyler.

 

How about this one, Rescue Plan #42B?  Codename: Hailmary

 

IMF steps up support for Europe

Fund offers to buy region’s sovereign debt



Wed, 10/05/2011 - 10:36 | 1741244 goldbu11
goldbu11's picture

Buy the rumour, sell the bullshit......

Wed, 10/05/2011 - 12:55 | 1741899 slewie the pi-rat
slewie the pi-rat's picture

but there's so many rumors, we're running outa bullshit to sell!

welcome to zH!

Wed, 10/05/2011 - 10:39 | 1741262 slackrabbit
slackrabbit's picture

I still say that Tonga is going to bailout the EU, and Fiji is going to recapitalise the US!

Untill I hear public denouncements from their respective governments, I belive its true.

Also I am going to sell my gold, and buy Dexia - I tell you, that thing is going to the moon! 

Now... crack pipe anyone?

Wed, 10/05/2011 - 10:59 | 1741344 Tsar Pointless
Tsar Pointless's picture

"it is incredible that we actually expect anything from these disparate states, let alone rally on non-news"

It is even MORE incredible that we let these people stay "in charge" of us.

It is even MORE incredible that we don't just toss them out of their plush little offices and off of their corporate-owned but publicly-funded private airplanes and tar, feather, and hang the entire lot of them. All of them.

With respect to Don Henley, I'll paraphrase one of the lines from The Eagles song "Get Over It":

Let's kill all the lawyers AND politicians, and let's kill them tonight.

Wed, 10/05/2011 - 11:06 | 1741372 Dick Darlington
Dick Darlington's picture

And one more denial of IMF's Borges voodoo magic

 

IMF isn't contemplating market involvement with EFSF Wed, 16:59 05-10-2011

 

What a SAD (and insolvent) world we live in...

Wed, 10/05/2011 - 11:15 | 1741405 Temporalist
Temporalist's picture
European Nations Face Downgrade, Moody’s Says

"Moody’s Investors Service followed its three-level downgrade of Italy by warning that euro-area nations rated below the top Aaa level may see their rankings cut amid contagion from the region’s debt crisis."

http://www.bloomberg.com/news/2011-10-04/euro-area-nations-below-aaa-may...

 

 

Wed, 10/05/2011 - 11:21 | 1741432 LookingWithAmazement
LookingWithAmazement's picture

IMF calls on Europe to recapitalize banks for 200 billion euro. They'll do it. Problems fixed, euro survives, banks alive, no Armageddon.

Wed, 10/05/2011 - 11:35 | 1741490 DosZap
DosZap's picture

BAROIN SAYS SUPPORT FOR BANKING SYSTEM IS EUROPEAN ISSUE

 

Great news!!!!!!!!!!!!,does this mean you won't take anymore American Taxpayer funds(that we do not know about??).

Since it's a Eurapeeeing issue..

Wed, 10/05/2011 - 11:48 | 1741543 Wolf in the Wilds
Wolf in the Wilds's picture

And now the IMF has this to say about what Borges has been talking about:

 

Mr. Antonio Borges, Director of the International Monetary Fund’s European Department, issued the following statement today in Brussels after remarks at the launch of the Fund’s latest European Regional Outlook report:

“Let me be clear about some earlier comments I made.  The Fund can only lend its resources to countries, and cannot use these resources to intervene in bond markets directly. We are lending to several European countries that have asked us for support.  We do not have any additional requests for support from European members and we are not contemplating any market involvement with the EFSF.

“Any alternative lending modalities to what we do now would require a different legal structure and the use of a different source of financing. We have not discussed these issues with our membership.”

All I can say to all this is WHAT THE BLOOCY F**K!

Wed, 10/05/2011 - 11:52 | 1741556 disabledvet
disabledvet's picture

I didn't know Victor Borge was still playing and making us laugh. Some talents never fade...and he was...and still is!...one of the best.

Wed, 10/05/2011 - 12:08 | 1741628 AldoHux_IV
AldoHux_IV's picture

It's laughable how we the markets forget about the severity of the problem and are willing to melt up based on rumors that once again do nothing to solve the problem.  In all the analysis and statements, nothing addresses the solvency issues of these sovereigns/institutions.  The liquidity needs being addressed by these insolvent countries is a joke-- where will the real money come from? Funding and bailing out these black hole institutions we call European banks won't change the fact that the EU countries are far too indebted and won't be able to grow themselves out of this debt.

The headlines of rumors are once again piggybacked on technical nuances of the market to once again give the illusion of validity behind insane policies.

Wed, 10/05/2011 - 12:23 | 1741730 Shvanztanz
Shvanztanz's picture

From Al-Jazeera.net 

 

http://aljazeera.net/NR/exeres/B24F8E08-D96A-4BA8-9C39-9EFBEC2AC68F.htm?...

 

In Germany, the number of likely votes for the bankruptcy of the heavily indebted Greece is increasing, since the ruling Christian Democratic Party supports a contingency plan prepared by the Ministry of Finance to confront the implications of the bankruptcy of Athens when it occurs. Minister of the Economy, Phillip Roessler raised pressure aimed at organized default procedures. 

 

An official with the Bavarian Christian Party, the third partner in the government of Angela Merkel, called for Greece to exit the European Union for a period.

 

Berlin has increased pressure on Holland and Slovakia to pass a law to expand the powers of the European Rescue Fund, that the German Government sees as capable of keeping the Greek bankruptcy under control and to control its repercussions. 

Wed, 10/12/2011 - 11:45 | 1765960 karmete
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