Moody's Says EFSF Unable To Support EU Bonds, Sends EURUSD Lower

Tyler Durden's picture

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X.inf.capt's picture

END GAME.....

BITCHEZ!

GOT PM's?

HyperLazy's picture

Got PMS? Heavens no, I don't menstruate. But I have heard that the new Euro Bonds are 20% more absorbent.

eigenvalue's picture

I expect markets to close higher once again today. Even God will live long enough to see the End Game...

Fips_OnTheSpot's picture

The plot thickens.. "EFSF has failed, we need ESM!!1" - and make Germany a total slave to Bruxelles. Doomed.

TruthInSunshine's picture

There are two choices, period.

Either Germany goes along with what's going to be a bad plan (for Germans and the rest of the EU) and:

1) Authorize the ECB to print an amount of EUR that will make The Bernank blush (and that's saying something), which will absolutely crush european consumers and business not having the predominant portion of their business operations geared for exports (and even these such businesses will ultimately get dinged badly as price inputs either kill their margins or kill their volume of sales); or

Germany does the more sensible thing (for Germans and whatever is left of the EU, and if just a small core of more solvent nations, or no real integrated, common-currency union is left, that's fine, too, given how FUBARED the EU is as of now) and:

2) Essentially gives buzz cuts to bond holders of PIIGS+France+UK debt (sovereign and both private and 'nationalized' banks), while re-writing the rules for admission/retention in the EU to reflect a significantly more stringent financial litmus test, and one that must be met on at least an annual basis (including deficit spending as a percentage of GDP, using real, verifiably accurate numbers, as just one measure).

 

There's no way around deleveraging. It can either be drawn out and painful, creating a death by a thousand paper cuts, or it can be violent and swift, resulting in a torrent of blood flow, but the violent and swift method at least allows the clearing process to take place rapidly and gives underwater economies the ability to reset and start growing in a real and sustainable fashion once again, and new and far more stringent financial controls will ensure that they don't just end back in the habits that created their crises in the first place.

And if 20% or 30% of the banks go down, good riddance. There are way too many banks as it now stands, and that thicket of dead wood needs some serious culling.

Counterparties to banks that go bye-bye will have to take the hit, whether hedge funds or mutual funds or pension funds or private investors: Investment carries risk. That The Bernank & Geithner (and Paulson) bailed out the sorry asses of those who were counterparties to the likes of AIG (as just one example) is not just reckless and incredibly anti-capitalist, but criminal, since they essentially used taxpayer dollars and critically wounded the real economy in doing so.

The Bernank broke all markets, in a quest to avoid taking the medicine that would have helped treat Greenspanbubblei-itis, and worse yet, the brilliant trifect of Paulson-The Bernank-Geithner then made matters worse in 2008 by kicking the can, giving trillions of taxdollars to useless financial institutions, who are now zombies that are eating the brains of consumers and real business on main street.

The Bernank Broken Zombified Markets.

 

longonSpam's picture

Way too many banks?!?!? Uhh okay.. so we go from 6 to 2?

JPMorgan Stanley Sachs of Gold Man

GoFar with ShitiBank of Amerikkka

TruthInSunshine's picture

Way too many banks as in thousands of banks.

Even if this was not the case, and there were only 6 as you stated/implied, cutting 30% would leave closer to 4 rather than the 2 you stated.

longonSpam's picture

I can't wait for Cramer & Kudlow to announce that everything is back to normal & shill more worthless common stock.. 'Heres some nice shiny Monsanto & Caterpillar to piss away your fiat'..

MORE KABUKI BITCHEZ

Tuffmug's picture

EFSF = European Farcical Shitstorm Fix

Threeggg's picture

Going long tree's and Ink !

...........................and bearing grease.

ACP's picture

Long mini S&Ps, big S&Ps, euros and whatever else Bernanke is buying.

Dick Darlington's picture

EFSF - shooting peas since 2011

nathan1234's picture

NO condom works for the EFSF

They get pricked when used or have manufacturing defects so they dont work at all.

In short it is already FUKED

Dick Darlington's picture

*SPAIN BANKS' ECB BORROWINGS RISE TO EU76 BLN IN OCTOBER

*SPAIN BANKS' ECB BORROWINGS ROSE  FROM EU69.3 BLN IN SEPT

Stabeeleteee!

Element's picture

So ... this is bullish right?

Element's picture

hmm, yeah ... more cash = growth! ... wheeeee!  ... less is not more ... more is more

 

EDIT:  I especially liked this bit, in light of inventories ballooning ... again;

Mike Ryan, New York-based chief investment strategist at UBS Wealth Management Americas, which oversees $715 billion, said in a phone interview Nov. 9. “But access to funding is no longer a problem. There’s willingness to lend, there’s a sense that balance sheets are in good shape and a sense that default rates are going to remain low.

Mike2756's picture

Of course they're sharing it with their employees, they get to keep the rope.

http://youtu.be/aoNccwtxwwo

gianakt's picture

Chinese spotted selling Euro's on heavy volume!!!