Mini Flash Crash Following CDU Statement Eurozone Leaders Have Excluded Boosting Volume Of EFSF Sends ES Down 30 Points
After soaring by over a hundred points, the DJIA subsequently plunged in a flash crash type move after Reuters carried headlines saying that the CDU budget expert said that the Eurozone leaders have clearly excluded boosting the volume of the EFSF (and the plunge has nothing to do with any ridiculous rumor of an S&P downgrade - the S&P would be sent into exile if it dared to defy Obama at this point in his debt ceiling hike victory lap). The plunge was further exacerbated by a previous interview on CNBC with Olli Rehn in which he was pressed for details on the EFSF which he naturally would not provide as obviously Germany is still not onboard. And as everyone knows, without a €1.5 trillion expansion in the SPV monetization mechanism known as the EFSF, Italy is doomed. The result: a 30 point plunge in the ES showing once again that when it comes to flash crash risk, it is once again all about Italy and insolvent Europe in general.
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