As always, the most pragmatic read thru of what are now day to day rescue efforts out of Europe, which in its own words has effectively given up on seeking a long-term remedy, comes from UBS' Art Cashin who as usual cuts right to the bone of the deluge of essentially hollow endless chatter out of Europe whose sole purpose is to once again baffle all the algos with binary bullshit.
From UBS Financial Services
The Eurozone “Remedy” - Stocks on both sides of the pond are having a dizzying rally as first light hits New York.
Details of the “agreement” are still a bit sketchy and are beginning to vary slightly, depending on which leader is outlining them.
In broad terms, a few things seem consistent. New loans to Spanish and Italian banks would get no priority standing. The loans would go straight to the banks and not through the sovereigns. Banks would not have to be in a “program” to get such a loan.
It seems that some of these loans would require unanimous approval. That would give everyone a veto and could become cumbersome. Further, the program may hinge on the appointment of a European bank supervisor. That’s not due till yearend.
Also, as our astute London associate, Paul Donovan, wonders, what about retroactivity. Could a country like Ireland, which took on the debt of its banks deconstruct the process to take advantage of the new plan?
So far, there is little comment in Frankfurt and Berlin. How it plays there may be critical…..very critical. A test vote might come as early as today.