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Latest European (Fake?) News: EFSF Talks Have Stalled
We may have posted this already minutes ago, but at this point it is all one big blur, so we will go ahead and regurgitate. The latest counter-disinformation from Europe comes from Reuters: "Plans to tackle the euro zone debt crisis have stalled with Paris and Berlin at odds over how to increase the firepower of the region's bailout fund, French President Nicolas Sarkozy said on Wednesday. Sarkozy told French parliamentarians the dispute was holding up negotiations. He then flew to Frankfurt to talk with German Chancellor Angela Merkel in an attempt to break the deadlock ahead of a make-or-break European leaders' summit on Sunday. A French presidency source said the French and German leaders were meeting other euro zone policy chiefs and International Monetary Fund head Christine Lagarde on the sidelines of an event mark the end of Jean-Claude Trichet's presidency of the European Central Bank. France has argued the most effective way of leveraging the European Financial Stability Facility is to turn it into a bank which could then access funding from the ECB, but both the central bank and the German government have opposed this. "In Germany, the coalition is divided on this issue. It is not just Angela Merkel who we need to convince," Sarkozy told the parliamentarians at a lunch meeting, according to Charles de Courson, one of the legislators present. His comments fuelled doubts about whether euro zone leaders will be able to agree a clear and convincing plan when they meet on Sunday. " Judging by the reaction of the EURUSD, this IS news because it only made Bloomberg minute ago, even though it hit Reuters about 45 minutes earlier.
Like we said: one big blur.
In the meantime, Sarko is telling his hecnhmen to call the FT and tell them "Bleue Fer a Cheval aimee le €3 Trillion Bailôut"
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wow
Hurry, make more plans to make plans on a bailout!!!!!
Dats mah 6-6-6 plan
I am waiting for the FT article/rumor.
This "story" in Handelsblatt:
http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=...
And comments of German readers (must read!):
http://translate.google.com/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=...
Willkommen in Frankfurt, Monsieur le Président !
OT
http://www.businessinsider.com/how-the-government-could-save-the-economy-by-constructing-a-2-trillion-2011-10
MMT is a wonderful thing... as long as it is kept in vitro. The second it begins interacting with that non-special case of existence under a reserve currency, and in a globalized world with shifting labor surpluses, there are no fixed constants, known as the market, it collapses under its own weight, or technically under the weight of the quadrillions in debt securities it would issue if it was allowed it, under the false pretext that economic growth = debt. Which is why the government has to take over the market itself, first in the form of Treasury control via the Fed, then every other asset class as in Japan. Which is great, however it eviscerates capitalism as capital markets are no longer a mechanism for wealth creation but merely for wealth transfer.
Markets have always been about wealth transfer though, have they not? No disagreement on any of the other points.
There was a time when going public meant raising capital for a business that is viable and has substantial upside potential in the long-term. It would not be able to IPO otherwise. The initial capital would be used to grow, hire people, expand, etc., i.e., create more capital. Secondary market issuance would then be used to reward the business by lowering its cost of capital if it was successful. Now, all anyone cares about is how to dividend cash from the corporation to the BOD as fast as possible, and how to flip stocks in nanoseconds so they are not frontrun by HFTs.
The market is nothing but a farce.
The IPO market is just a quick make a buck scam for well connected insiders. It is sad more people don't see it as that. Most corporations that go public do not use the money to expand operations, many fire people after the IPO because they are no longer needed to build the case for going public. But, ethics don't matter in making money anymore.
It is really odd to watch the retail space. Skull Candy went from nothing to having a huge market presence due to the early rumors of an IPO. It isn't because they make great headphones. The amount of inventory per store was insane. You couldn't sell that quantity of headphones in 20 years, but it made for great initial numbers. Same for Shock Doctor.
When CNBC named a competitor of mine product of the year, even though the company was based on complete BS and was later sued of of existence, they saw a 10 fold increase in shelf space. The rumblings were they were going to file for an IPO this year. My company was asked about our plans and we were flat out told that a discussion of the prospect would work heavily in our favor. As a private corporation inventory levels would not be allowed to grow much further but shelf space could be found if there was an IPO in the future.
Corporations are being told to run pump and dump schemes. Big Box retail is just a vessel for money laundering. Really is sickening.
I agree with 100% of what you said... And further it by saying what you are describing is simply what you see when a fractional reserve system reaches the backside of the money supply curve (aka widespread debt deflation).
It is also clear now that the powers that be where aware of what is occuring as far back as the mid-1960s, and tried various methods to prevent the inevitable deleveraging effects of an anticipated aging global population moving into retirement. This more than explains, in my mind, why derivatives and the obscene globabl risk were simply ignored. Meaning, judging from Greenspans comments in the early 2000's, it appears that the FED honestly thought that the private sector had found another way to prevent the inevitable deleveraging wave from occuring. I think historians will say, however, that what they underestimated was the structural effects to an economy that occurs when the financial sector "outgrows" the fundamental economy. Meaning, cheap money and leverage simply pushed out real productive business capacity. It was hidden for a while by trying to pretend that global wage arbitrage was productive business capacity.
It is also clear now how it will end.. It will not be some climatic event, but rather will be a very painful and slow process that most likely will occur over a decade. Meaning, the current solvency issues will be papered over by yet another accounting scheme to buy more time. I think people even on ZH as underestimaing how far an unsustainable situation can go on when the powers that be (aka Central Banks) can dilute their currencies into infinity. Also, as long as no other viable tradable currencies are available, options to protect yourself will continue to be very limited. In the end, however, I think the final nail in the coffin to our current situation will be the political response once the society as a whole finally accepts the magnitiude of what is occuring. Unfortunately, the 2012 election does not appear to be that breaking point. One hopeful sign, however, is that I do not think that it will end in civil war. Hopefully it will be a political "solution" that the powers that be will accept peacefully.
Thanks, I forgot about all that. I was focused on the smart money taking money from the dumb and the government taking that money from the smart.
And in this brave MMT world it still took almost 18 months for them to cobble together and assert that they could muster an 'emergency' 440 billion euro bailout fund? ... now that's farce ... except this farce keeps getting bigger by the newest daily headline blip ... meanwhilst, productive capacity and final-demand keep dieing the slow death of terminal stupidity in Brussels - an unrelenting, insufferable, and with you to to the bloody-end, type of stupidity.
It's like trying to shake ground-in shit off a blanket.
Agreed...it seems as thought Henry Blodget decided to be a fraud in something other than securities (journalism)
Linking to Joe @BusinessInsider only leads me to speculate as to what kind of freakshow reads ZH and Joe Weisenthal. Seek help.
entertainment
Stalled, put in a new fuel pump!
If I were Merkel, I'd be stuffing my face right now to quell the anxiety.
want some dough-nutz?
http://acapella.harmony-central.com/showthread.php?2802446-Angela-Merkel...
Come on, you guys gotta give me some props for this one. Me hours ago: "Something brewing. Vix creeping up and up. Either it's about to pop or the market is. Script flip this afternoon with NEGATiVE rumor?"
btw, could the market manipulation be ANY MORE OBVIOUS at this point. Just look at the way the VIX frontran the rumor....
sorry greece passes another worthless austerity
it's an hour too early. poop on your props.
weil yeah okay. but it's not my fault the bears suck at these games. We're like the democrats pre Obama campaign.
hang on, we are breaking further down
This is just the dump before the pump.
Give it another hour (probably 3:17 PM NYSE time) and then GO-ALL-IN LONG ES.
Fools and their money......
Sell, sell, sell,
how do you get a down in the polls, Jewish, French limousine liberal socialist to hammer out a deal with a down in the polls Mercedes Marxist that looks anything like the capitalistic thug Paulson's TARP when you have little socialists like G-Pap and Slovenia saying Nein! Answer: you don't. Europe don't do Adam Smith or Al Capone.
And on the seventh day, the ECB created a giant turd.
This is how they teach journalism at school?
The anticipation is killing me. Will they fix it won't they fix it? Please stay tuned.... Man this is exhilarating!
Oops forgot to leave my sarcasm at home.
Well colour me surprised. All the hot air and promises they have been peddling for months blow up in Merkozy's face when they reach the point where someone actually has to reach for their wallet and front up some actual funding for their Euro dreams.
Hahahahahaha.
EFSF talks have stalled? Deja vu.
why should we believe this information? Careful, likely a set-up to create more tradeable market volatility as a surprise announcement is probably imminent...................
Is it time for ping pong playing robots again?
When the only thing that moves something is words, then that thing is lighter than words even.
Ponder that.
ORI
OWS Flash De-Mob
I pondered the hell out of that and it still doesn't make sense.
Big One, perhaps you can try pondering the heaven into it?
Sometimes, it's good to be the backward facing wildebeest.
ORI
Actions speak louder than words. Actions are the true weight in life. Words are cheap because most often they are cheaply spoken. Actions give words their worth and in the case of 'heaven' their spiritual weight.
I wanna say this
To use Molotov cocktails in street fights in Greece is wrong
They need to use piss and shit bombs , just all protesters should shit and piss in plastic bags and throw them to the police
This will remind them they just a piece of shit and is more effective then a molotov cocktail
Serious
Adapt
PS if we do something like this in US against the fat and corrupted police will be Assault with a deadly weapon ?
Yeah, people are getting numb to the drama. Need video of Dancing with the Stars to get me interested. zzzzzzzzzzzzzz................
Let me guess, Friday afternoon, about 1 minute after Wall Street Happy Hour starts(2pm EST), a newsflash saying the "We did it, We did it, we saved the EU" will come across the FT wire and our tried and true Friday meltup will ensue.
Well well well, who do we have here...
10-19 14:17: Bank of France's Noyer says French banks can withstand sovereign...
Aaaand the trophy for Mister Denial 2011 goes to...
So France, what's the fuss? U keep telling EVERYTHING is fine and yet u still want ALL THE LEVERAGE U CAN HAVE to save the day.
See Slovakia - you could have received credit for dismantling this thing, since it never was going to succeed anyway
The amazing thing is to think about how much other necessary work isn't getting done because every waking moment seems to be around trying to schedule side meetings to talk about the inevitable.
This is a good time to be in 100% confetti. Unless you are really good like someone I know to short this market quick and dirty.
0
sanguine one moment, morose the next. I swear those euro-bastards are working for the HFTs.
Cannot help but feel I'm in a revolving door, going round and round
Lies and more lies
Hopefully this won't end badly
The market is very overbought at this point, jumps at excuses to sell.
"a make-or-break European leaders' summit on Sunday" <--- Says who?
Isn't it strange every time the market goes south the miners get hammered into oblivion! while the stocks that should don't
this is all theatre, to keep us all entertained! whatever amount that's agreed to, transfers real money for fake. just hope the NWO will be kind to the elderly!
Market just turned negative.....not sure why, my guess is the news bulletin "Lindsay Lohan taken into custody at probation hearing..."
There is some merit in seeing who is jumping on airplanes to see whom.
Sarkozy looks a LOT more desperate than Merkel.
"Yes sport fans it's the moment we've all been waiting for. It's the fourth quarter with 3 seconds left on the 80 yard line and Sarkozy is ready to punt the ponzi can through the Merkel goal posts."
OOOPs.,... Wide left! GAME OVER!
Fake Nooz?
SNL Sues EU! Details @ 11!
Beige Book just released is spooking Mr. Bull.
The Beige Book noted that the twelve Fed districts indicated continued economic growth in September, although it said many districts described the pace of growth as "modest" or "slight" and generally noted weaker or less certain outlooks for business conditions.
And there goes AAPL. 0
(:: It was bound to happen sooner or later. Mr. Market always wins. Man, I am glad I got out of the way of this crap.
Lets drop this Dow 1,500 points at get this shit over with. I know we are all sick and tired of this no matter short or long or cash. What a waste of a market.
In about 20 minutes we will get news that Merkel and Zarkosy got a room together in Frankfurt to work things out for all of Europe and the market will jump 300 pts.
I am shocked the ECB has not made enough in the stock and futures market with all the pumps. they could have bought all the PIIGS bonds with cash....problem solved.
whats wrong with these idiots
Quick! Make up rumour that can be picked by Bloomberg and stocks can continue to raise!
I'll take a shot - instead of leveage, fund will institute additional flat 7%VAT tax in Eurozone to get needed money.
Nah, not European enough, put 7% on water bills?
Notice the slow grind down on this news. So careful are the bears now. New normal is "Elevator up, Escalator down".
Okay, look, there is no money and this whole European Union crap was a mistake from the get-go. You can't have a monetary union without a political union and those European guys don't exactly have a history of sitting around the campfire together sipping single malt scotch. It is flat out not going to work so get rid of it already. Dump the euro, everyone goes back to their own favorite currency, that which needs to be written down IS written down, and Oh My God, banks have to price their assets to what they are actually worth. What a f-ing concept! The world will not end, the birds will still chirp and the goddamn sun will still come up in the morning. Just get all this stuff OVER WITH!!! Okay, back to our regularly scheduled programming....
What the Europeon (sic) Union needs is a version of Jimmy Hoffa. Right now they have Elmer Fudd and Betty Boop.
Tylers,
Can you keep a running list of all of the times the press has announced a reversal in the European bailouts?
And a list of official emergency/crisis meetings/summits of EU/IMF and G20 finance ministers ... juxtaposed with it.
When Sarkozy asked Merkel this evening about the EFSF leverage, Bank recap. and Greece hair cut?, Merkel told him to check for her answer with Herman Cain.