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Presenting Today's Deux Ex Rumor
Update: And it gets better. Now Dow Jones:
- Euro-Area Countries Ready To Provide IMF With Bilateral Loans, According To Draft Seen By Dow Jones
Yet earlier today, none other than Mario Draghi said that loans to the IMF to purchase European bonds would be legally unworkable. Brilliant
With just 30 minutes until the close we were cutting it close to a rumorless, headlineless session. So here is Reuters to the rescue:
- ESM BAIL-OUT FUND TO BE GIVEN BANKING LICENCE - DRAFT
- EU DETERMINED TO STRENGTHEN BAILOUT MECHANICS - REUTERS
That the ECB will throw up all over this is one thing. That the ESM will not be able to fund itself is another. That this is not really news, and had been pushed for for days, is a third. That "determinations" in Europe mean nothing, is probably the fourth and final. None of that however matters.
Yet, what might matter is that this is a flat out lie. Again, from Reuters:
ESM BECOMING A BANK "OFF THE TABLE"
Euro zone leaders were also likely to announce they would move forward the launch date of the euro zone's permanent bailout fund, the European Stability Mechanism (ESM), to 2012 from the initially planned mid-2013, the official said.
"There seems to be consensus that it will enter into force earlier. Following the process of ratification, in the summer of 2012," the official said.
The ESM is to have total lending capacity of 500 billion euros, thanks to 80 billion euros of paid-in capital from euro zone countries and 620 billion euros of callable capital.
Euro zone officials said discussions were still going on whether to remove the combined lending limit of 500 billion euros, which had been set on the ESM and the European Financial Stability Facility (EFSF), the temporary fund now in operation.
The official said leaders could agree to a review clause in the ESM treaty, saying they would decide on the final capacity when the ESM becomes operational.
Another issue to be sorted out is the fact that the 80 billion euros of ESM capital had been agreed to be paid in over 5 years -- which could leave the ESM with lower lending capacity to start with. That in turn could mean the whole euro zone bailout capacity would be lower than now.
Euro zone officials said a proposal to give the ESM a banking license -- which could allow it to access European Central Bank funds, boosting its firepower -- had been rejected.
"The idea of giving the ESM a banking license is off the table," the first official said of an idea floated by EU Council President Herman Van Rompuy, backed by France but opposed by Germany.
The official said the treaty on the ESM, which has been agreed but not yet been ratified, would be changed to stress that private sector involvement (PSI) in any restructuring of euro zone sovereign debt would follow IMF procedures.
"We are not giving up the PSI, but saying it could happen in exceptional cases, strictly along IMF rules," the official said.
The source was confident an agreement would be found on how the bloc's Lisbon treaty could be adapted to better tackle the debt crisis, but said the exact text of those changes would be agreed later and finalized by a March summit.
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Man, the bears simply cannot get a break.
And what get the truth printed?
Extend and pretend all you want, but judgement day cometh.
Robo, get you application in early for the summer.
http://www.newyorkfed.org/careers/summerintern.html
http://www.youtube.com/watch?v=e-VMTIPwk74
Ah.. it's the mechanism for a facility to insure the guarantee of collateral swapped to pledge the fund.
Got it.
I'm starting to wonder if the world is better of with delusions.
I'm thinking of calling up Agent Smith and seeing about getting plugged back in.
Although these rumor-denial patterns are entertaining. Like Charlie Brown and the football. Someone bites every time they come out.
pods
One might note that Wall Street "algos" are literally Googled:
http://thespiritoftruth.blogspot.com/2010/10/wall-street-is-googled.html
Maybe this is being taken advantage of?
Tyler since the algobeasts no doubt are programmed to read you, why don't you come up with your own bogus rumors that will move the markets big time.
Like, 'Bernanke will print trillions of dollars and drop them from copters starting tomorrow!'
EXCEPT 10 minutes before give your readership the bogus rumor in pig latin so we can place our bets down before all the other thieving skunks.
The pig latin code would be something like 'erbankeney will intpray illionstray and opdre emthey from opterscay artstayingthey morrowtey.'
All in snark, but a wonderful way to fuck with the algobeasts since they are not programmed to read pig latin! At least for a day!
In Deutschland we trust..... for the judgment day.
My chart says S&P down 1,56%. What the fuck are you talking about?
sometimes a rumor float is a nice opportunity to buy more puts. I took the opportunity to get me some more IWM puts....
When life gives you lehmans, make lemonade.
Tylers -- see above. feel free to use!
Your picture is fucking gross dude
This bitch is coming back down before the close... Just wait to see what happens in Asia tonight...
Nuff Said.
You mean you bulltards are barely hanging onto your jobs to resort to lame tactics like this.
Double down on your paper trades, Robo- this isn't a down day, it's a buying opportunity for you.....
Treasuries appear to be the winner of the special olympics this day
Isn't it grand, this organic, free market economy, we call the equities market?
Oh sorry, I'm obviously talking complete shit, but you started.
I can't believe that pure lies fuel this market, and on a daily basis.
timmah is careening around europa, telling one pack of lies to one clown, another to another, and so on
think of him as a rushing chairman at this point...
complete and utter confusion at the highest levels of financial bullshit
by this time tomorrow, timmah & the chairsatan will be working on the next stage of their design, and the europeons will all be elegantly insulting each other
then...heavy popcorn + betting on how shitty the EUR0 & S&P will break in asia + hi-0ctane eggnog = happy, healthy BiCheZ!
How about all those that bought into yesterday's rumor, do you feel they caught a break?
I must go long rumors and short hope....market is beyond broken
your UGA trade @bear forum is getting smoked.
Wow... thanks for that comment. Markets back to tanking. The rumor 1/2 life is now as short as RobotTarder's liquidity.
Robo, why don't you fucking wait 10 minutes to see if your comment holds? ES right back down to where it was before the rumor. Clown.
3:30 buy program on target http://hedge.ly/vdmeYO
Like clockwork, free money, well paper anyway.
Rumormill halflife now 10 minutes?
We need a two-lie end to the day.
Rrrrrrrrright on.. the 3:30 calvary charge of the algo brigade....CHARGE!!! BTFD
It's working!!!!!!!!!!!!
Paint that tape, Brian.
Just gives us another chance to short this ponzi...maybe the last time before tomorrows Euro Clown Summit
i told you....no way we stay down
The no crash Dec tradition looks like it may hold.
Jan and feb are going to be a bitch.
Fuck Santa, I want a Scrooge Rally.
a hope and a prayer
Miracles around the corner. And a new religion will ensue. More immaculate births. Like they say - we need myths when we're troubled. And the magical thinking is amazing these days.
The rumor de hour is working...buy buy buy.
So we are either up or down 5% at the open tomorrow.
Hahahah, what a joke of a rumor-- these things are getting more insanely idiotic by the day and frequency of use.
Rumors are getting weaker and weaker.
algobots don't care.
Who keeps buying on these rumors? Sheesh...
Another plan for a plan. Algos love those!
when someone speaks out of both sides of their mouth yet neither side is telling the truth, well, what you have there is a damn good liar.
Despite the fact that this draft isnt even written up and all 17 EU (possibly 27) countries have to agree to it...
yawn
Boy they are really getting lazy on their rumors. I remember the good ol days when they were more creative
I think you're wrong - a banking licence for the ESM and the legitimacy to directly recapitalise European Banks, combined with the ECB - you now end up with a structure much more similar to the Federal Reserve. This is bullish risk if true.
who rules it germany?
Of course, when the FED was started, everyone was not up to their eyeballs in debt with declining oil production.
pods
3:30 rumor rally COVER and BUY ritual.
Again, nothing concrete. More pledges, hopes, and determinations that add up to nothing. Short covering for a little while and then expect some pretty big selling. For bulls, regardless what CNBS says, this is a disappointment. For shorts, be patient...
When is the market going to stop "Responding" to these rediculous rumors that seem to come out each and every time the market ticks down a point? Unbelievable.
Soooo if I have too much debt to pay off, all I need is a banking license and all is well. Awesome, where do I sign?
What's the half-life of this rumor though? Very little I imagine. Let's see if it can even make to the end of day.
Germany just rejected it. Rumor DEAD.
The half-life is getting shorter, but the denial is still only knocking off 50% of the pop.
judging by how AAPL is ripping higher, this draft must also include a free i-pad for everyone in Europe courtesy of the ECB?
misprint, free kindle
Goldman done scaring grandma out of stocks. ramp the market
Ah capitalism in its most glorious, naked, warty, hellacious, fraudulent, vomit-inducing form...every day one gets the opportunity to purge at the porcelain alter of this most revered money making shrine...behold the awe-inspiring rumor mill once again.
Tyler as CIO
Context and ES widening
"If at first you don't succeed, keep on sucking until you suck seed." Curly of the Three Stooges
what jsut happened? the 3 pm pump just got reversed in a few seconds!?
How about EU loaning money to IMF to loan to ...
Does anyone else think that this is a glorified shell game?
http://confoundedinterest.wordpress.com
This is normal banking.
I'll give them some credit for this being somewhat believable
EU bailout fund to be given banking license?
Oh wait...what is that phrase..."Carte Blanche"?
Makes sense now...
Parliamentary committee: Franco-German proposal unconstitutional
"The Chairperson of the Grand Committee Miapetra Kumpula-Natri told YLE that Finland could not accept the proposed changes to the bail-out fund. In her view, the decision of the Constitutional Law committee ruled this out."
http://yle.fi/uutiset/news/2011/12/parliamentary_committee_franco-german...
http://yle.fi/uutiset/news/2011/12/pm_katainen_quotarduous_and_challengi...
Of course, it is only matter of time until the finnish goverment finds new way to not give a damn about constitution in order to pleae the Eurocrats. I bet they figure out really cleaver way this time, cause they ain't getting enoough votes in Parliament for changing the constitution. True Finn party won't never vote for such a change.
Euro dollar just tripped down, counter to the story already in the market.
And.....it's GONE.
As germany rejected the draft.
The rumors now have a shorter life span than a decent fart.
It is becoming almost SAD - the ONLY Leg this market has left to stand on is the Rumor or the Rumor of a Promise that more free candy is on the way. The half life is now measured in minutes - what a desperate group of thieves.
Fucking bullshit rigged market.
Rumors seem to get denied more quickly nowadays. So they need to release them later now so that they don't get denied before the close.
Heading back down already? Pre-mature rumor ejaculation....
Must be a newbie in the rumor management department today.
15 minute half-life... not very impressive.
Looks like the afternoon rumor half life gets shorter every day.
http://finviz.com/forex_charts.ashx?t=EURUSD
Only 15 minutes left to manufacture a new rumor that can stick for more than 15 minutes. This is so exciting. It's like a life or death game of scrabble!!!!
"That's a mighty healthy looking market you got there, Ferd!" - Fannie Farkle character on Rowan and Martin's Laugh-In, as imagined by Tsar Pointless
The market will rally tomorrow on a rumor of a rumor that they will meet agian and again until they come up with some kindof a cockamemee solution that in the end will be more printing just like every other time.When will this world Ponzi finally be exposed ? Maybe it already is.....?
This Corzine hearing is the biggest waste of time and money ever. He has not said "One" thing that we didn't know when the hearing started.
Right ?
Ok ZHers - Why in God's name would Germany trade its leveerage over the Euro Zone for no value? From a 'brand' perspective Germany has EVERYTHING the EZ needs to be perceived as viable - & they will trade away their capital to bailout the southern periphery for no material gain? Not a chance, moreover, previous customer loyalty (German Imports) aren't enough - the PIIGS are levered & this leverage is economically compromising - unless Germany gets a HUGE set of benefits/incentives/privileges to ALLOW a BAILOUT of ANY KIND there is no trade & no credibility to any of the bailout rumors - Sorry RoboTrader the BTFD opportunities have no chance of breaking out above the 200 Day moving average until Germany gets PAID - When Germany gets the deal the ECB will print & not before!!!
wow usually they wait until after hours to refute the rumor. Germany already rejected it.
"Germany rejects measures on banking license for ESM/EFSF"
A pharoah table. the guy at the end of the bar you talk to when you gots to have the bread. doubling down, betting on red, letting it ride, paycheck advance, 3. Card Monty, Esq.
wonder what the interest rate is in the backroom on a benjamin billion? It smells of desperation in the glaring LED light.
finance.yahoo showing Au up 3 bucks to 1744. wtf???
HA HA HA HA HA! New lows for the day. I love Germany. They're the dynamite in this shit cake.
zh does pump the rumour mill...
"Pump" the rumor mill? You make no sense.
"pimp" is not elegant...
The Dow must close above 12K biatchez !@
Anybody watch that close? What a fraud !
Dumb bitch on Faux News says Corzine is answering every question LOL !
Not Today! Maybe tomorrow, bitchez.
LOL........Printed at 11999.76 and now adjusting to 11997.93
Is this trading a joke or what ! WTF !
It's a joke.
I think Ben Stein has the right idea , quit your jobs and move to Costa Rica
when does rumormongering just become out and out fraud?
When it causes prices to go down
it is no longer clear which end is their ass
SP500 new downleg confirmed - bearish triangle chart at blog.
My long term indicators have continued to warn of USD strength and EURO weakness and these signals have increased since 2009. The overdue dollar rally should be substantial.
http://stockmarket618.wordpress.com