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"Planning To Plan" - Merkozy Reach Yet Another "Agreement", Adding "It Is Too Early To Enter Into Details"
No, the day is not August 7, 2011 when we had the first joint Merkozy statement attempting to prevent the latest and greatest round of the global financial crisis with nothing but pure rhetoric, in which however the word Dexia was strangely missing. The day is October 9, and yet we get another statement from the two, this time far more desperate. From Reuters: "We are very conscious that France and Germany have a particular responsibility for stabilizing the euro," Sarkozy said at a joint news conference with Chancellor Angela Merkel in Berlin. "We need to deliver a response that is sustainable and comprehensive. We have decided to provide this response by the end of the month because Europe must solve its problems by the G20 summit in Cannes." And the kicker: Merkozy "suggested that their proposals would include a plan for recapitalizing European banks, accelerating economic coordination in the euro zone and dealing with Greece's debt problems." In other words fix absolutely everything. But the punchline remains the same as always: Sarzkoy "added saying it was too early to enter into details." Ah yes, those ever elusive details, which nobody can ever provide, because, THEY SIMPLY DON'T EXIST, at least not in a universe in which 2 + 2 is still 4.
Yes, much to Europe's chagrin, a plan that in one swoop "recapitalizes European banks, accelerates economic coordination in the euro zone and deals with Greece's debt problems" which at the same time returns peace and prosperity, keeps the locals happy, and throws in the kitchen sink, sounds truly great on paper, but merely confirms to the markets that the ruling oligarchy is now completely out of bullets and the best they can do is jawbone with ever loftier promises that can never be kept.
And, as always, nothing but more promises:
"We are determined to do the necessary to secure the recapitalization of our banks," Merkel said at a joint news conference with French President Nicolas Sarkozy in Berlin.
"Germany and France want the same criteria to be applied, and criteria that are accepted by all sides," she said. "We will ask all relevant authorities ... to check what we are doing is sustainable."
"We are not going into details today, we will present a complete package" for stabilizing the euro zone at the end of the month, Merkel added.
We have just one question: where will the $1 trillion in additional capital needed to recap said banks come from.
We can wait.
We eagerly anticipate to see the market's reaction to this moment of peak desperation when EURUSD opens for trading shortly.
Below is an artist's rendering of the Merkozy thought prorcess:
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We have a plan and we're not tellin'!
They don't need to push the market up.
They only need a plausible explanation for the market going up.
.
"You want the plan? You really want the plan?....Well... you can't handle the plan!"
"We have a plan, and it works." -- Klaatu, "The Day the Earth Stood Still"
On Earth, not so much...
I have reached an agreement to discuss making a comment later this month.
Gotta keep it rumoresque and less newsie
Imagine the spike if the markets had been open when this came out.
fixallBiCheZ!pic
The Better New Deal: +/- 0
More like:
We have no plan, and we're not tellin!
Richard Sulik of Slovakia is LEEEEROOOOOOOOOY JENNNNKINS!!! Fucking LOVE IT!!! Merkozy, "Stick To The Plan, Stick To The Plan!!!!" ROFLMAO!!!
http://youtu.be/LkCNJRfSZBU
Divine Intervention!
Hahahahahahah......"Oh God, oh God...Leroy your so stupid"!
At least I got Bryndzové Halušky.
@Mike2756
We are not tellin', because it a secret. The secret, secret!
Here it is in full details: http://www.youtube.com/watch?v=iesXUFOlWC0
The credit markets are just a little stuck: http://youtu.be/JlSQAZEp3PA
Why worry that pretty little brain over details, eh?
No Fuss! No Muss!
What did Merkel & Sarkozy say, "you'll have to pass the plan in order to know the details"???? ROFLMAO!!!!! This is truly some classic stuff!
Stick Save, Bitchez!
'We have agreed... er... (waiting for market reaction) yes! rest assured... we will... ... ... '
Yep. Game over.
Right now sark and merk are arguing whether to use efsf to either bail out banks or countries. France wants to recapitalize banks. Why? Because in order to nationalize dexia, socgen,et.al they cant risk their own governments money. To do so would automatically lead to a french downgrade.
Germany wants to use it to bail out greece and the other countries.
I have a feeling that france's banks are at immediate risk now and germanys could afford to kick the can a little longer.
Its really now french vs german banks with dexia(part french) taking it first. Germany knows this.
Slovakia see's no benefit either way so they stay out (unless that payoff purse gets bigger;)). Greece is also going down at anytime. Something tells me that 167 billion the US borrowed this last week went directly to MS, BofA, and greece.
Dexia is too big to save and too big to let fail. The eurozone either prints to cover the losses or takes the losses. Borrowing more wont even work for a month because the efsf is not big enough. And not everyone can agree on how to do eurobonds.
Sounds like checkmate to me. Any thoughts?
There was no agreement?
There is no plan!!
Yep this is bearish for stawks! Dow 6k coming...
More like Dow 20000 & ES to 1500. They just went full retard promising the markets whatever they want to make stocks go up. How is this bearish?
The hedgie shorts are a bunch of pussies. With this headline, it going to be like Walmart on Black Friday. There will be people trampled as they cover.
Advantage --> PTB. They're going to buy another year here to get through the US Elections, Chinese power turnover(biggie!!!!) and Euro elections.
They have effectively defused the Greek situation by dangling shiny new money to the markets. In other words, "take a virtual haircut to help us ruling class out and we'll give you stock prices to infinity to make up the difference"
Disgusting.
Merkel is getting ready to give Sarko a French Kiss....and he can't wait.
Wedding announcements soon, it will be a group wedding.
The "agreement" is for the endless shrip special at RL for dinner!
What is Luxembourg going to do? They are at what, 3,000% debt to gdp now?
"arguing whether to use efsf to either bail out banks or countries" - So far as I can judge it they are arguing about whether to bail out either themselves or their banks (or perhaps both) by borrowing money from each other and lending it back to each other to bail each other (or each other's banks)(or both) out. A bit like the UK where (quote) 'the Bank of England, which is 100pc owned by Her Majesty's Government, is buying up a third of the debt owed by Her Majesty's Government. The Treasury is becoming ever more in debt to itself. It's as strange as that.'
The only prediction we can make with any certainty is that if this nonsense carries on much longer currency collapse is the inevitable outcome. We don't yet know which one will collapse or when. But when the first currency collapses they will all collapse because of loss of confidence, and paper money will die for a time. But not yet... patience... not just yet.
Agreed - except the bit about the BOE. Some of it belongs to "bank of England nominees" good luck finding out how much though, the shareholders in BOE nominees have their identities protected by act of parliament.
Is anybody able to get a read on dexia's expsure on the shadow liability side. We can see stuff in the surface but whats in the shadow system?
Saw a figure for about $950 billion earlier....somewhere.
So, the 60-40 plan adds about another 100B$ to Belgiums' debt. http://www.bloomberg.com/news/2011-10-09/belgium-is-said-to-get-france-s-approval-to-buy-dexia-consumer-bank-unit.html
Best Plans have no details
A plan to make a plan. Now I feel better!
what about planning a stress test for the plan to make a plan? hmmm? THAT would make me feel good & safe.
Great news! That is exactly what is rumored to be be in he planning stage as we speak. Details to follow!
Hopefully Slovakia fails to pass the EFSF and this whole farse can reach a far quicker conclusion, this is getting really tiring.
...Trudging slowly over wet sand Back to the bench where your clothes were stolen This is the coastal town That they forgot to close down
Armageddon - come Armageddon! Come, Armageddon! Come!
Everyday is like Sunday Everyday is silent and grey Hide on the promenade Etch a postcard : "How I Dearly Wish I Was Not Here" In the seaside town ...that they forgot to bomb Come, Come, Come - nuclear bomb....
whatever the details i'm guessing it involves printing presses
German terms for Linke (Leftists) Undeutsche un-Germans, Rotfaschisten red fascists, Humanisten humanists, Sozis socialists, Autonome autonomists, independents, Anarchos anarchists, Zecken ticks, blood-suckers
don't forget to include untermensch ;D
A Merkozy is a very ugly chimera. lol.
A Sarkerkel too.
those two, meet as much as the TOTUS appears on TV!
dust-whack-shun
Why they are consulting with Dexias board is beyond me, beggars can't be choosers.
Merkozy and Dexia both don't have any plans.
" I am more afraid of an idiot with a plan then of a genius without one"! The politicians are the geniuses WITHOUT A PLAN!!
They got nothing and won't have nothing come Oct17th! Markets are at critical tech levels, Alcoa will report shit, FOMC minutes will be shit so....?!?!?!?
What are you folks thinking will the market response BE?!?!
You're an optimist to think it waits until the 17th
Crash the market and let the bitches French'es enter the long waited heart missing transformation to communism. nationalize everything and put a midget like Sarkozy in power to heal his frustration on the lazy nation and his personal secretary.
That little pebble called "Dexia", at the top of the rotten debt pile has started to roll down hill!
As it does, it will start all the other pebbles and rocks sliding into the valley of debt death!
Look out below!
Good for 2-3% on European equity indices tomorrow, and minus 10% by the end of the month.
You guys are way too negative!
You've been saying that since dow 12,700... how does it feel to sit down?
as cramer might say. buy buy buy ...........on the news............
And there in lies the problem, every single one of them is mathmatically challenged.
For fuck's sake. How long can these markets be talked up? It's amazing how long markets can remain delluded to the final outcome of all this.
It took 100 years for the Roman Empire to fall (completely).
My 3 part business plan addresses ALL of the Euro issues:
Phase I: Collect Underpants
Phase III: Profit
Clear?
So the Sarkozy plan won out eh? I knew Merkel would give in.
He's a clever little gnome.
The underpants gnomes are far more effective economic planners than are the ECB
My iPhone has an app that translates politicianese. A summary translation: "We have no idea what we're going to do. But we will lie, cheat, and steal as the entire ship sinks."
They are sliding into the hole and their words do not fit what’s actually happening. After all, it’s Sunday, right, the day before the markets? These statements are just following them all the way down to the bottom. Did you hear what Sarkozy said: “"It Is Too Early To Enter Into Details"!!
They’re running a race with Obama... on who is the biggest liar.
Your iPhone missed the the critical part "we will present a complete package" for stabilizing the euro zone at the end of the month". The fireworks will be over by the end of the month. Their timing says they are giving up. Translation: When this blows up in the next two weeks remember we were going to save it but just didn't have time...
And then they will blame it on Slovakia or some other scapegoat for delaying it just. over. the. line.
Kind of like the entire world now blames the Tea Party for all the US economic ills because they (though in the minority) did not vote for the debt ceiling increase. Remember, that was the House. There was no filibuster. Just individual loosely aligned as a group refusing to vote yes. With no more rights than any other congressman
"We are not going into details today, we will present a complete package" for stabilizing the euro zone at the end of the month, Merkel added.
The end of the month? LOL
I guess they will anounce Greece default at the end of month. And transfer those money to recap. banks.
http://www.hark.com/clips/kyyphfkvtp-5-grand-no-problem-have-it-in-the-morning
By "package" they mean gag gift. The one where you open the box to find a box which opens to reveal another box... Massive equity raises coming.
If CDS's are never triggered, what value are they in insuring against a debt default; and at what point does the availability of debt go to zero along with the faith in ISDA?
Just add them to the other mark-to-fantasy stuff...
So...????
And...????
Er...????
Ah!!!! Bullish, absolutely bullish
One size fits all.
The only detail being waited on is how Ben is gonna hide the "loan".
Whether it's Ben, the Chinese, the Martians or a newly made up fund labelled with alphabet spaghetti it really doesn't matter. The only 'bailing out' that anyone is going to do is with some magic fiat money called into creation especially for the purpose. Whether the countries involved in this mega mess ( err - that would be just about all of them, right?) go down owing $16 trillion a piece or $98 godzillion a piece I can't see what difference it makes. The politicians can only delay (and you've gotta hand it to them they're fantastic at delaying). In the meantime buy PMs because we're all going to live to see fiat blowing in the wind.
Sarko is bringing the Trojan Horse rubber to the party. The loan will be veiled and someone will turn out the lights. When its all over and the lights come back on...Merkel will be on top.
How could even the most bullish listener feel anything but emptiness after an announcement like that?
The markets are hell bent on a rally, and I believe the politicians have given them enough mirage to chase and keep this rally alive for few more weeks or perhaps even until the start of next year; however I expect the shit to hit the fan in 2012 once all options are truly exhausted including empty talk press conferences.
"We have just one question: where will the $1 trillion in additional capital needed to recap said banks come from."
Simple... some financial vehicle indirectly funded by the United States. Problem solved. It's great being part of a reserve currency country that can print on a whim, with no real capital backing, and only promises capital will be available in the future.
In the words of the Slovac party leader, when told that non ratification will cause banks to fail -
"SO WHAT?"
The market loves these statements. They haven't failed yet. Nevermind the details, this will be good for another 7% week. Remember, the market was oversold. <Sarc>
I'd like to point out how I absolutely loathe the word oversold and/or overbought. The markets have over-pretended and over-extended on bogus fiat paper for long enough, and we know the banks in the plan to have a plan will see zero executive pay-cuts while human potential is gang raped in emotional exhaustion over every bogus fucktard of a plan known to mankind.
Expect Bob Pisani and Steve Liesman to be beyond excited over this tomorrow.
"It is too early to enter into details". Where have I heard that before?
"A most marvelous and profitable undertaking, nobody to know what it is".
Written on a London stock kiosk during the South Seas Bubble. From "Extrordinary Popular Delusions And The Madness Of Crowds" by John Mackay.
One of the Euro zone countries will decide to save themselves, whether the Slavs or Germany or whoever. When that happens and the bailouts end we will see who bankrupts and how far it goes. The oligarks will try to hold it together as long as possible and may succeed for a long time. It could be that the US craters this November when the SuperGoobers don't accomplish anything which triggers military and social cuts that start riots and a market crash. The train is rushing tword the blown up tressel and will crash into the valley, we just don't know who the driver of that train will be.
Or even legal !!!!!
"Legal" is gone and ain't comin' back 'bro. You can now be sanctioned, in secret and extra-judicially. Better grow eyes in the back of your head.
Like a skipping record that repeats and repeats, and repeats...
Sort of like my realtor who repeats..."it's the best time to buy a house" over and over and over.
Me think markets are range bound, albeit in a new range!
1010-1150ish?!
They can't rally that hard into year end so they sell off hard and then rally hard and so on until they can no more or...some country no matter how big or small is saying NO MORE!
Me short, me stay short, me think next leg is down before year end bonus rally!
Not promoting Charles nenner, but his charts showed the nice drop this summer many months before it happened. His lastest chart on the S&P shows a small small rally then drops lower than we are now into late november December with a freefall into January 2012. Then 3 quarters of range bound in 2012 until November it looks like. Then it shows a rally somewhat like we saw in 2009. I know Nenner has been wrong before, but hey you can't always be right. His timing has been impecable though ever since January of this year.
they need to pass the plan to find out what's in it.
The plan will be to have IMF off load the crap on to the USA. Watch and see.
Merkel is the wingman. Nice.
"THE PLAN, THE PLAN!"
Herve Villechaize must be rolling over in his pint-size grave.
Surprise! We're all going to work for the banks!
I'm so excited, I can hardly contain myself.
You mean "bank" after all the mergers it'll just be a bank that we all work for.
Oh yes. Forgot. But that's even more exciting! See ya at the office.
Once again... (sigh) HELL! See you in hell...
Banks could run into significant problems should they be forced to write down billions in sovereign bond holdings.
"So what? They took on too much risk. That one might go broke as a consequence of bad decisions is just part of the market economy. Of course, states have to protect the savings of their populations. But that's much cheaper than bailling banks out. And that, in turn, is much cheaper than bailing entire states out."
-Richard Sulik, Slovakia.
Naturally CNBS, doing its best to promote central banks agenda, is characterizing this blatant bank failure and nationalization as a decisive coordinated response from a Euracracy, "rescuing" a troubled bank and setting it on the path to prosperity. Also they throw in a quote from a minor official assuring us that Dexias situation is an anomaly, all the other banks in all of the EU are just fine.
Naturally the idiocracy of the EU are hinting at a "super duper" plan on a Sunday night, trying to sustain the market bounce that was faltering mere days from their last hint of a rumor of a plan.
Market reaction? The market is still easily fooled, but for much shorter timeframes lately, times was, back in the QE days, a "super duper plan" bounce would be good for months on end.
Surely the larger institutions remember the 2008 crash all too well and the folly of believing bureaucrats that all is contained. If they move big blocks into equity now, they could turn a lackluster year into another huge loss as they scramble to sell during a crash. The "nobody saw it coming", "unprecedented" excuses in the annual reports would have zero credibility to clients fleeced yet again so soon for basically the same reasons.
But then again they all might figure they can juice it up for a few more percent and sell into the resulting upward momentum before everyone else.
This is "just" the bear stearns moment, the part where they assure everyone that was close but all is well now,
They love to stress how interconnected the financial world is, when using scare tactics for bailouts, yet tout how "contained" a huge bank failure is when it happens.
I predict either an outright crash next week, or a token pullback, a higher low, a violent rally for a few weeks or so and then the crash.
Here's the news: Europe is in a whole lot of trouble and they ain't fixed it.
"Where will the money come from...", Now, this question has an obvious answer, "From America". Here is why:
1. During the Balkan Wars Europiens played stupid and inept so the Amercians could get in to do the work (dying soldiers) (spent money) Europeens should have done.
2. The Golf Wars (2 of them) were fought (dying soldiers) (spent money) by Americans while Europeans, and others, had as much vested interest (Oil) as Americans.
3. Afghanistan War (10 years long) has been fought (dying soldiers) (spent money) by Americans and who is making deals there? Chinese.. Go figure...
4. During the 2008 Financial Crush the Fed was bailing out the whole world, not just the US Banks. Even Libya got a cut...
5. US is fighting and spending money in Libya supporting rebels and who is making the bigest deals? Europeans and Chinese...
6. Americans have been subsidizing the whole world's economy by importing and buying everything and anything Americans could get hold of. The bigest of them all, products from China and Oil from Middle East. How did they pay for it, you might ask? by borrowing for China and Middle Est, off course....
These are just a few examples of the American stupidity.... So, who do you think is going to pay for the European bail-out?....
whether anyone likes it or not.....if your short you are going to get your face ripped off. Just because the market 'should' be lower......I think the S&P 500 is headed for the '09 lows eventually, but this shit takes time. The market will get there in a damn hurry when it's good and ready, but don't hold your breath!
IMF will bailout everybody with its new SDRs
They'll have to clear it with Al Qaeda first!
I'd link to a Dilbert cartoon, but there are so many...
Pete
I like this one: http://dilbert.com/strips/comic/2011-10-01/. Sure to become a classic.
We're not going to bail anymore bankers out, don't be radicchio.
How many plans to plan a plan have they planned to plan up to now?
Shhhhhhhh.......Your supposed to be a brain dead mo mo monkey and only focus on the current plan of a plan. Now go buy some MS and BAC.
So is this like a Sunday thing now? As in every Sunday? Because if I'm right there's going to be another "positive" rumour on Wednesday and then a statement discrediting the rumour on Saturday. Or is it on every other week, from the week of every newly proposed solution between Sarkozy & Merkel. I'm confused.
China's CDS biggest problem. This is really gonna hurt.
If they just released the plan to plan to plan a rescue every day, we'd be at dow 20,000! Wow, this whole un-reality makes my head want to spontaneously combust.
dbl post
Failing to plan is planing to fail but failing to act keeps the EU intact.
All of this is just debt. Someone owes someone else.
If I owe someone $100 but have collected $50 in interest I still owe them $100 but their simplified loss is only $50. The longer it drags out, but interest payments continue, the closer to a $0 net loss and a 100% write-off on the loss is achieved. In a 35% tax bracket, the simplified return is thus 35%, if taxes go to 40%, all the better as far as bad debt is concerned to a certain extent.
Making money and paying taxes is one thing, but losing money and thus "saving" even more by tax avoidance is much better.
Greece does not have problems, Ass-holes..
Every other Ass-hole bank in the world has a problem with Greece.
Tell them where to put in Greece. And if you don't know where...
Here is a clue Greece... It starts with A and end with Hole.
Seriously, this is getting ridiculous. These people are high-level leaders? What a disgrace.
We need more Suliks.
The plan is likely to be somthing like useing the IMF or other organisation to promise to partially backstop the larger banks of France and Germany.
Mostly i think they are waiting to see if the EfSF is expanded so that fund can be used to loan money to the banks who will leverage that free money up to cover the losses.
It doesnt have to work just has to sound like it might.
"... a stinking plan, a stinking plan, we don't need no stinking plan"
No, that would be "DEETAILS!!!! WE DON NEED NO STEENKEENG DEETAILS!!!!" Fixed it for ya!
Sarkozy said at a joint news conference with Chancellor Angela Merkel in Berlin. "We need to deliver a response that is sustainable and comprehensive. We have decided to provide this response by the end of the month because Europe must solve its problems by the G20 summit in Cannes."
Lets start here...how about having those "very critical"meetings in places like: Bosnia, Bulgaria, how bout Detroit, Harlem, fucking Stockton Calif. Let's see if they can find a solution right in the heart in some of the places where their stupid ass policies created the chaos. Notice their meetings are in Cannes, Davos, Waikiki, Paris, Rome....what a fucking sacrifice. These socipaths will do anything to hang on to the status quo...anything to keep the fucking ponzi alive.
"It is difficult to get a man to understand something when his job depends on not understanding it."Upton Sinclair
eurusd yawns in merkozy's general direction... the fact that there is zero bump on this "news" is not good for bulls.
Oh my god, my faith in humanity is partially restored. At least for the next few minutes until another plan to plan to stay in 5 star hotel in order to plan is unleashed.
a man a plan a canal panama....er does that mean they get us coming and going? That widget Sarkozy can keep his precious package
I wonder if those two have ever phucked?
In December, it will mark two years since this clusterfuck started.
Hoping that we get a Super Committee to "solve" this clusterfuck before then.
One believes the best solution is 3 ply Charmin. Lots and lots of it.
Yes just like how we are solving our deficit. Super committees are needed to tell us what we all know. We are screwed and are spending too much. Same as Europe. Plain and simple you spent more than you had morons.. now pay the piper and get it over with.
Once again plans are afoot to begin planning to make a plan! WOW!
Sounds like a plan.
hey, the Greeks do have a plan indeed:
they are just buying 400 military-tanks from the U.S. with European bailout money.
http://articles.businessinsider.com/2011-10-05/markets/30245456_1_greece...
http://bazonline.ch/ausland/europa/Griechen-wollen-angeblich-400-Panzer-...
I guess we know why Timmy was over there trying to get them to bail out greece sooner, rather than later. Who knew he was such a great M1A1 sales man? Someone should hire him to push some Volts down at the local dealer, I hear theres a bunch of them in inventory.
they have decided to take china's offer of total backing of the euro in exchange for accepting the yuan as the the reserve currency of record by 2016(nov)
A big-nosed French dwarf called Sarkozy
With a butt-ugly frau-lein got cozy,
They rolled in the hay,
And to Europe's dismay
Things have never appeared less rosy!
Looks like EURUSD trying hard to stay green. Maybe we have some sanity left in the world that doesnt take this "plan" as great news.
"I suggest you panic"
Taking cues from the Democrat/socialist leaders in the US.
Just pass the plan and wait till later for the details on how screwed you just got.
I cannot believe Germans are putting up with this horseshit.
EFSF is temporary anyway (expires mid 2013)
the real deal is ESM (seems that the state guarantees provided in EFSF are binding under the international law even if you leave EZ and EU altogether)
therefore, there is a slim chance that the EFSF can be organised as "Le TARP" as long as ESM shall be organised as
"Das Euro Sado Maso"
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