Let’s keep it coming. We already worked our way through the “Fab 5” this morning. Now we have dialogue pushing the creation of a bailout fund that’s going to guarantee debt (sound familiar?) of European banks. You know, take the exposure of sovereign nations out of the picture.
Who’s going to fund this?
Um, the sovereign debtors who’s debt is affecting the banks.
But wait! Let’s not stop there. I mean, come on gang…that’s only 6 recycled, uninspiring market pumps in less than a day. Why are we giving up now!?
Why not keep it coming?? We can have talk about creating a bailout fund for the bailout funds. I mean, it’s not like people are actually putting up cash into these fucking things. Who has the $600 billion in the EFSF? Imagine how big the fund could be if the EU dumbasses put the money instead into an EFSFSF (European Financial Stability Fund Stability Fund)? Then, China and Brazil could put their money into the EFSF and EBSF (European Banking Stability Fund), receiving guarantees from the EFSFSF.
From there, we could get the private market involved. I mean, $600 billion guarantees $1.4 trillion from the BRICs. $1.4 trillion would in turn guarantee $3.26 trillion of private sector money, according to the EU’s math.
Voila!! Magnifico!!! Crisis solved.
Then we can underwrite the whole fucking process onto the backs of the Germans, vis-à-vis some crazy bund offering that makes them liable for the whole God-damned mess. I mean, how can this go wrong!?
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First Bank of Alpha Centauri has a bid under this market.
They are willing to print zoltrans to keep this shit coming.
Go with it, bro.
__________
Lol. “Go with it” is probably the only real advice in this market.
hahah “go with it bro”
someone made a comment on a iBC_fn item that went something along the lines of.. “changing the rules of finance and tossing the irresponsibility of bankers onto the shoulders of the public” which is all these plans are doing…. disgusting
rowan and martins’ laugh- in where at the end of the show,the cast would pop out from those little “trap” doors and throw out one liners. trap doors with trapped rumors/lies. comedy of sad errors.i just want to know at this point, who is laughing at whom.
My favorite EU reading from last week. Just in case you missed it in 2006: http://www.economonitor.com/nouriel/2006/01/28/italys-tremontis-temper-tantrums-on-emu-in-davosa-sad-embarrassing-episode-for-italy/
Seriously though, there’s no way the EU can function with high worker productivity in the northern countries and lower worker productivity in the southern countries. Normally, the southern countries would adjust and be competitive by devaluing their currency. Debt burden relaxes, they have time to improve their competitive position. This ain’t happening with a single currency.
I don’t see how it will the EZ will stand in it’s current form. I don’t see the Germans providing transfer payments to the periphery to support their current debt. I don’t see the periphery cutting their spending so they can support their current debt load. It will fail.
Every solution I’ve heard so far seems to end up with all the “well to do countries” a.k.a. Germany holding a bond auction to backstop all the counterparty risk. The EFSF, the Bank debt, direct intervention…all the well to do just need to pony up cash.
You listening Germany?
Germany will be forced to carry the load on this because the big banks want it that way. All in the transfer of wealth thing you know.
Transfer all of the wealth to the banks that is……….
perhaps the fed and 2-3 sovereign wealth funds get behind the idea…
it would not solve the problem, but make it go away for a while
If they can actually find the money to make the problem go away, I’d acquiesce.
Cain, we just need you to buy a few more Benz, BMW and Audi …
And just like that, U.S. 10 year note yields are negative on the day.
When they continue to burden the middle and lower classes with all of this garbage and delay – the push back and revolution is going to be infinitely worse. This will certainly end in violence domestically in America, will the army shoot on citizens? Probably.
Is that it for the rally? Europe was solved and the NRF said we had the best retail numbers ever. Oh wait they say that every year and then continually revise the numbers down. Does NRF also handle europe?
I love European Math 1+1=4
ROFL @ ‘EFSFSF’! Nice one, Cain.
Cain,
Don’t fret yourself with the details. Eventually, they will print. This is all just buying time.
1. They have as of yet given no indication that they will print (although I agree with you).
2. ECB printing by itself harms the U.S.
3. Printing is not some magical, free endeavor, devoid of consequences.
4. Timing is important – if they decide to start printing at DOW 7,000, how is that a win for you?
1. Part of Merkel’s plan re “moral hazard”
2. Only if Bernanke finds religion and says no mas on QE3
3. This ship has sailed
4. The ECB won’t live to see DOW 7,000.
Net, net, expect to see ECB QE1 by January 1st and QE3 by the second half of next year. The question is: at what point do the PM’s start pricing in QE-infinity? In other words, they shouldn’t be just pricing in this round of easing, but the next one after the next after next.
4. Should read the “EU won’t live to see DOW 7,000”
Has anyone seen retail sales in Europe? Horrific. Spain down 7%. UK -19, etc. Anyone believing the hype of NRF in the US will be sorely disappointed. Every year they “project” great numbers for Black Friday and then cut later. The ECB can print but it may not be enough to prevent the market being pulled into the vortex. In the end printing may only create extreme volatility (hope trade) for an even harder crash
Exactly; printing money is only a free move when the market is in a mass deflation route, that’s what Bernanke’s paper was all about. If all prices are going to $0.00 then just keep printing until they don’t or society collapses.
You can’t pull that shit at WTI $98.67, it’s fucking inconceivable. You don’t get any gain from it.
Cyber Monday sales up 15%. Sounds good, but last year they were up 20%. The growth rate is decelerating and something to think about when buying a high multiple e-tailer. And considering more of us are buying online it makes you question the overall strength of retail sales
2011 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/28/BU5I1M5439.DTL
2010 http://money.cnn.com/2010/11/30/technology/cyber_monday/index.htm