“We all stated our confidence in the ECB and its leaders and stated that in respect of the independence of this essential institution we must refrain from making positive or negative demands of it,” Sarkozy told a joint news conference in the eastern French city of Strasbourg.
Comments »Shit Heats Up With Russia: Plans to “Destroy” U.S. Missile Defense Shield
ALERT: The Euro is Taking Out New Lows
Now down 1.34% on the session.
Comments »FLASH: FINISH YIELDS ARE SOARING
+4.5% to 2.8%
Comments »FLASH: IRISH YIELDS ARE SOARING
+6.1% to 8.21%
Comments »FLASH: CZECH YIELDS ARE SOARING
+5.2% to 4.22%
Comments »FLASH: AUSTRIAN YIELDS ARE SOARING
+5.5% to 3.7%
Comments »FLASH: BELGIAN YIELDS ARE SOARING
+7.6% to 5.46%
Comments »A Parting Story From #OWS
As the #OWS saga winds down in many cities as no camping has been imposed we say farewell for now until a renewed vigor comes about.
A f’d up story to come out of this.
Comments »Germany warns on Greek aid traunche
Comments »BERLIN (Reuters) – German Chancellor Angela Merkel rejected on Wednesday criticism of the ECB for not taking bolder steps to stem the euro zone debt crisis and made clear the next tranche of aid for Greece could not be paid out unless big parties in the country committed in writing to back austerity.
“The European currency union is based, and this was a precondition for the creation of the union, on a central bank that has sole responsibility for monetary policy. This is its mandate. It is pursuing this. And we all need to be very careful about criticizing the European Central Bank,” Merkel said in a speech to parliament.
On Greece, she added: “The Greek question hasn’t been cleared up yet, because the conditions are not in place for the payment of the next tranche.
“For that to happen … we need not only the signature of the Greek premier but also those of the parties that have agreed to support the government. Otherwise there can be no payout of the sixth tranche.”
DANGER: European Banks Use Financing as a Deleveraging Accounting Gimmick
Banks are loaning money as quickly as possible to make it appear as if they are reducing leverage on the books.
Comments »Spain in Race Against Time to Avert Bailout
By Ambrose Evans-Pritchard, International business editor
7:39PM GMT 22 Nov 2011
Yields on three-month Spanish notes jumped to 5.11pc at a sale on Tuesday, higher than rates paid by Greece last week.
Mr Rajoy’s team is scrambling to find ways to shorten the paralysing hiatus until mid-December when the new government is finally able to take charge under Spanish law.
“We have to go beyond strictly legal requirements because the markets are not going to wait,” said Miguel Arias Canete head of the Partido Popular’s top body.
Close advisers to Mr Rajoy said the party will have to flesh out exactly how it plans to pull the country out of its downward spiral, and perhaps reach an accord with the outgoing socialist to start implementing emergency measures. The country may need €30bn (£26bn) in fresh cuts to reach its 4.4pc deficit target next year.
HSBC said the country is in a race against time to avoid becoming the fourth EMU country to need a bail-out. “The question now is whether the new government is able to reassure markets that it can deliver quickly enough to beat back the market bears and avoid turning to the (EU-IMF) troika,” said the bank’s strategist Madhur Jha.
HSBC called for “more clarity” on bank policy, labour reforms and budget austerity. “Markets are clearly worried about the Spanish banking sector – bank restructuring and the provisioning of real estate loans on banks balance sheets,” he said.
The bank said the double whammy of surging borrowing costs and a slide back into recession together risk inflicting serious damage to Spain’s debt-dynamics, pushing public debt above 86pc of GDP over the next three years.
“Spain cannot face this crisis by itself. The sovereign crisis is a eurozone problem and needs a eurozone-wide solution. The last few weeks have shown that the window of opportunity is rapidly closing for Spain and other peripheral countries unless some very concrete decisions are taken at the eurozone level to negate all talk of a euro break-up. With governments dragging their feet, the bulk of support over the next few months will have to come from the ECB.”
“What Spain needs is a policy mix similar to that seen in the UK, with the government having a strong medium-term austerity plan in place while the central bank provides the backstop, stimulating the economy through its ultra-easy monetary policy,” said the bank.
There is no sign yet that Germany is willing to drop its vehement opposition to any such action by the ECB.
Bundesbank chief Jens Weidmann repeated on Tuesday that the ECB has no legal mandate to act as a lender of last resort, and compared money printing to the deadly temptation of drinking sea water.
“Whoever believes that the current crisis can be overcome by giving up crucial principles of stability orientation, pushing current legislation aside, is wrong,” he said.
Read the rest here.
ECONOMIST: Bernanke Is Going To End Up Bailing Out All Of Europe
Federal Reserve Chairman Ben Bernanke’s apologetic take on the Fed’s negative role in causing the Great Depression may translate into a willingness to bail out Europe, writes economics blogger James Pethokoukis.
Bernanke will not be willing to let the European Central Bank’s ineffectiveness infect U.S. banks and destroy the global economy.
He points to statements from well-known independent economist Ed Yardeni to elaborate on that idea:
Comments »Given the ECB’s reluctance to act, I suspect that the Fed will spearhead the formation of a Global Liquidity Facility (GLF) to avert a global financial meltdown. Fed Chairman Ben Bernanke demonstrated that he is a master at putting together such emergency measures back in 2008. In effect, it would act as the world’s central bank. Mr. Bernanke is clearly very worried about the prospect that the European sovereign debt crisis is a contagion that could spread to the US, as evidenced by his bizarre town hall meeting with troops returning from Iraq on November 10. The GLF would receive deposits from the Fed and other participating central banks, including the ECB. The funds would be used to buy the bonds of debt-challenged governments that would be required to accept strict supervision of their fiscal and regulatory policies by the IMF.
Dexia Bailout in Jeopardy
BRUSSELS – Belgium asks France to renegotiate the bailout Dexia Holding, also on the distribution of the state guarantee of 90 billion. The euro crisis plan unfeasible.
From our editorsCoup de théâtre in the Dexia case. While President Jean-Luc Dehaene again yesterday for the special committee appeared to Dexia a clarification of the trap and the dismantling of Dexia, shows a significant proportion of the Belgian-French agreement of October 9 obsolete.
In particular, the rescue plan that Belgium, France and Luxembourg have agreed in early October for Dexia Holding (the remaining bank, save), stands on the slope. And this includes the much talked about 90 billion state guarantee on bank financing of the rest – especially the more massive historical bond portfolio and the daughters of Dexia remain unsold.
Belgium took France by persuading the majority (60.5 percent) of financing the rest with a Belgian bank Dexia state guarantee to cover. This guarantee, Dexia to enable the next year to 54 billion euros from the Belgian bond market to pick up. This would come in direct competition with Belgium itself, that money needs to get his debt and deficit financing.
The Belgian bond market is quickly drying up. This makes it impossible for the coming years tens of billions of Dexia to retrieve. Specialists estimate that for Dexia ‘only’ room for 20 to 25 billion euros from the Market. Since the agreement Dexia Belgium mistrust of financial markets, allowing long-term rates has increased dramatically: the beginning of October is 3.6 percent in Belgium paid ten-year loan, now it is 4.9 percent. And that has consequences for the rest of the financing bank. “Dexia becomes intolerable as it is such high interest rates on the market to pay, insiders warn.
French way
Belgium, France and the European Commission has therefore already stated that the bailout Dexia Holding need re-negotiation. As a possible way a new agreement in which the French, backed by Belgium, one additional share of the funding to take on.
Much time is not. For the euro crisis threatens not only Belgium in need of money to bring the whole bailout for Dexia falters.
Dexia Holding should not only pay high long-term market, it needs also a costly fee for the state guarantee. Total (financing) costs of the massive bond portfolio in the rest thereby threaten the bank proceeds to beat. Allowing the remaining banks are structurally unprofitable.
All parties involved are treated with the hands in the hair. “What now?” The remaining bank fail let go is not an option, it reads. The consequences for Dexia Bank Belgium (DBB) could not be foreseen. “The Belgian state bank to the rest Dexia Bank overdraft – no guarantees, so – given 20 to 25 billion euros, and then we lost all that money.”
Belgium sees the only solution is that France itself the bulk of the money that the rest Dexia bank needs from the French bond market gets. Belgium would be the part that France collects on behalf of our country, with guarantees covering.
But the French are not designed for jumping. They believe that Belgium commits perjury. Paris itself is under great pressure. The credit agency Moody’s yesterday put pressure on France once again by openly to question the sustainability of the French AAA credit rating. In addition, in the spring French presidential elections.
Dexia Belgium ruin.
Source: De Standaard
h/t: @zerohedge
Comments »JEFFERIES LOOKING FOR BUYER
Chicago Sheister Tony Rezko Sentenced to 10.5 Years in Prison
Tony Rezko, former fundraiser and friend of President Barack Obama and Gov. Rod Blagojevish, was sentenced to ten and a half years in prison Tuesday for corruption.
Rezko, 56, has already served about 44 months of the 126 month sentence on his 2008 conviction for corruption — including fraud, money laundering and attempting to get $7 million in kickbacks from companies seeking to win deals during Blagojevich’s time as governor — the Chicago Sun-Times reported.
Read more: http://trade.cc/jkv
Did BP Really Seal Off the Oil Leak in the Gulf ?
FLASH: BELGIAN YIELDS ARE BLOWING THE FUCK OUT
+5.5% to 5.08%
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