CNBC Deputy of the Rumor Dept., Steve Leisman, said “if the market is going up on my rumor, it is ahead of itself.” Clarifying the fact that nothing has been resolved in Europe and nothing has even been officially proposed.
He furthered, “Europe is either in for $2 trillion or the euro is done.”
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lollll
what a market.
The 2 trillion is a fake number. The German Finance Minister and other EU ministers have been saying all morning in Europe there is no more money to go into the fund. The Fund has about 250 bill left. What they are talking about is instead of buying 250B EU of bonds, use it to insure some portion of a larger number of bonds. So say insure 10% of the value of 2.5 trillion in bonds. That is ALL this is about. The market is so horribly off base on this it will be interesting to see the impact when reality dawns. Look at the live blog on the Financial Times home page for all the latest.
How nice of him to let us know after most media reports it as an actual fact that leverage will be used assimilating a TARP style approach.