|
Post by Clinton SPX on Oct 10, 2011 14:05:17 GMT -5
What situation is that? The secret plan rally?!!!
|
|
|
Post by Clinton SPX on Oct 10, 2011 15:02:20 GMT -5
From Dow Jones: "French banks are experiencing difficulties providing financing for aircraft purchases by airlines, a market that is largely dominated by dollar transactions, Louis Gallois, chief executive of European Aeronautic Defence & Space Co. (EAD.FR, EADSY), said Monday. "French banks clearly have problems financing aircraft purchases," he said, speaking on the sidelines of an event to launch a new French think-tank to promote the French industry.
|
|
|
Post by herceg1967 on Oct 10, 2011 15:08:06 GMT -5
From Dow Jones: "French banks are experiencing difficulties providing financing for aircraft purchases by airlines, a market that is largely dominated by dollar transactions, Louis Gallois, chief executive of European Aeronautic Defence & Space Co. (EAD.FR, EADSY), said Monday. "French banks clearly have problems financing aircraft purchases," he said, speaking on the sidelines of an event to launch a new French think-tank to promote the French industry. So how the "F" can they finance banks or other countries...........simply ludicrous to say the least.................
|
|
|
Post by Clinton SPX on Oct 10, 2011 15:11:26 GMT -5
Remember in 2008 Kudlow telling everyone how cheap banks were priced right up to the big collapse? Well I'll never forget it.
|
|
|
Post by Clinton SPX on Oct 10, 2011 18:04:08 GMT -5
If things were proceeding normally why do they keep postponing everything?
(Reuters) - The European Union postponed a summit by a week on Monday to allow time for a broader solution to Greece's debt crisis, after Athens said it had concluded talks with international lenders on an aid payment needed to avert default.
|
|
|
Post by alrighteh on Oct 10, 2011 18:19:09 GMT -5
looks to me like a few get nationalized on a daily basis and you have small change but no big drop. case in point today - erste, dexia, max and proton - next probaly the french banks and you keep pushing the meeting back until they a ready to announce that pigs have defaulted (start with the biggest first italy or spain - this is a wild guess )
|
|
|
Post by Clinton SPX on Oct 10, 2011 18:38:41 GMT -5
They need to have one of those telethon thermometers upside down to show the bailout fund as it get depleted, so we can track how long till its empty
|
|
|
Post by Clinton SPX on Oct 10, 2011 21:14:03 GMT -5
Spain unlikely to meet deficit target Alarm is sounded over the country's borrowing, with the chance of the public deficit being cut from 9% to 6% said to be slim
|
|
Ras
Commodities Trader
Posts: 239
|
Post by Ras on Oct 10, 2011 21:34:52 GMT -5
|
|
|
Post by Clinton SPX on Oct 10, 2011 22:27:53 GMT -5
of course they did, theres no wheels on this wagon.
|
|
|
Post by Clinton SPX on Oct 11, 2011 8:13:52 GMT -5
Troika Releases Statement On Greece: Commentary Attached Submitted by Tyler Durden on 10/11/2011 - 08:12 CDS Greece Gross Domestic Product International Monetary Fund Recession Summarizing the Troika'a statement, with some gratuitous commentary
Sixth tranche depends on Eurogroup, IMF approval: the use of Greece as a passthru vehicle for Eurobank funding will continue until morale and bank CDS improve Troika says Greek recession to be deeper than anticipated, 2011 fiscal target no longer within reach: the 50% negative revision in deficit to GDP in the past month has been duly noted Recovery only expected from 2013 onward: when it will be Bundesrepublik Griechenland Privatization revenue below expectations: must sell more islands to the Chinese, more gold to Qatar Additional Greek measures likely needed; essential more emphasis placed on structural reform - back in the day "freefall bankruptcy preparation" was not called "structural reform" Greece needs additional measures for 2012, 2014 - must be certain future penetration can proceed absent lubrication Greece overall made important progress - riotcam viewership is now PeyPerView and is used to pay for G-Pap's 3rd winter vacation
|
|
|
Post by Clinton SPX on Oct 11, 2011 12:20:28 GMT -5
DJ S&P: Outlooks On All S&P Rated Spanish Fincl Institutions Is Negative (H)
DJ S&P Could Downgrade Some Banks Further If Spain's Economy Deteriorates More Than Expecte (H)
|
|
|
Post by herceg1967 on Oct 11, 2011 12:24:23 GMT -5
Remember in 2008 Kudlow telling everyone how cheap banks were priced right up to the big collapse? Well I'll never forget it. Kudlow is an old goat that just says BUY......everything is fine...........I wish they would get rid of that asshole already............... JMO and BOL..............
|
|
|
Post by Clinton SPX on Oct 11, 2011 13:07:23 GMT -5
This just hit the German news wire:
google translated
Unusually high gold sales by central banks of euro zone
FRANKFURT (dpa-AFX) - A central bank has sold the euro zone over the past week an unusually large amount of gold. As the European Central Bank (ECB) announced on Tuesday, a single central bank in the euro zone of gold worth 181 million euros have flooded the market. As usual, the ECB allotted with not enough that Fed is involved. Typically buy or sell central bank gold holdings in the low single-digit million range.
|
|
|
Post by Clinton SPX on Oct 11, 2011 13:16:32 GMT -5
sounds like someone reloaded the euro monkey
|
|
|
Post by Clinton SPX on Oct 11, 2011 13:36:34 GMT -5
Everything is fine. Nothing to see here, keep shopping
Greece may Run Out of Gas in 3 Days in Refinery Strikes; Garbage Piles Up in Street of Athens
Refinery strikes in Greece ahead of a general strike on October 19, have caused supplies of fuel to drop to a mere 3 days. Everyone is up in arms over still more austerity measures. Also ahead of the "general strike", trash collection services are on strike and garbage mounts in the streets of Athens.
Cars Queue Up For Dwindling Gasoline Supplies
|
|
|
Post by herceg1967 on Oct 11, 2011 13:39:43 GMT -5
Everything is fine. Nothing to see here, keep shopping Greece may Run Out of Gas in 3 Days in Refinery Strikes; Garbage Piles Up in Street of Athens Refinery strikes in Greece ahead of a general strike on October 19, have caused supplies of fuel to drop to a mere 3 days. Everyone is up in arms over still more austerity measures. Also ahead of the "general strike", trash collection services are on strike and garbage mounts in the streets of Athens. Cars Queue Up For Dwindling Gasoline Supplies LMAO...............I'm sure it will be fine...............who cares if your house smells like garbage or looks like it thanks to all of it piling up outside.............
|
|
|
Post by Clinton SPX on Oct 11, 2011 13:42:11 GMT -5
Why would anyone bailout a country that is intentional destroying their GDP. How Fing stupid is the rest of the EU?
|
|
|
Post by alrighteh on Oct 11, 2011 13:54:50 GMT -5
why would anyone trust a country that is intentionally kill its currency (especially as it is a reserve currency)
|
|
|
Post by Clinton SPX on Oct 11, 2011 13:55:00 GMT -5
This just hit the German news wire: google translated Unusually high gold sales by central banks of euro zone FRANKFURT (dpa-AFX) - A central bank has sold the euro zone over the past week an unusually large amount of gold. As the European Central Bank (ECB) announced on Tuesday, a single central bank in the euro zone of gold worth 181 million euros have flooded the market. As usual, the ECB allotted with not enough that Fed is involved. Typically buy or sell central bank gold holdings in the low single-digit million range. So if they've been converting gold to euros that would explain the massive euro rally, has nothing to do with risk off at all
|
|
|
Post by Clinton SPX on Oct 11, 2011 14:06:19 GMT -5
Banco Popular Espanol cut to BBB+ from A- by Fitch
|
|
|
Post by Clinton SPX on Oct 11, 2011 14:07:25 GMT -5
Fitch cuts Banco Santander long-term issuer default rating to AA-...
|
|
|
Post by Clinton SPX on Oct 11, 2011 14:25:18 GMT -5
S&P downgrades Spain's banking sector
NEW YORK | Tue Oct 11, 2011 12:54pm EDT Oct 11 (Reuters) - Standard & Poor's on Tuesday downgraded a key measure of risk for Spain's banking sector, warning that the economic crisis will continue to have a negative impact on Spanish banks in the next 15-18 months.
S&P revised Spain's Banking Industry Country Risk Assessment to 4 from 3. The so-called BICRA scale ranges from Group 1, the strongest, to Group 10, the weakest.
|
|
|
Post by Clinton SPX on Oct 11, 2011 14:52:24 GMT -5
10-11 15:51: Fitch takes rating action on Major Italian banks following sovreign...
|
|
|
Post by Clinton SPX on Oct 11, 2011 14:53:53 GMT -5
DOW JONES NEWSWIRES
BRATISLAVA, Slovakia (Dow Jones)--Slovakia's divided parliament will vote on the amended European Financial Stability Facility--and its confidence in the current right-of-center government--after 2000 GMT, the parliament's speaker said Tuesday.
"I'm now calling a recess until [2000 GMT], with the vote to follow," Richard Sulik told the assembly.
Slovak lawmakers are expected to reject the EUR440 billion EFSF endorsement, which is linked to a vote of confidence in the current right-of-center cabinet.
Smer-Social Democracy, or Smer, the main left-of-center opposition party, is determined to bring the government down in the linked vote. Smer, which otherwise supports the EFSF and other bailout initiatives, wants concessions from the government in exchange for its support for the fund in the repeat vote.
These concessions may include a government reshuffling and a firm timeline for holding snap elections before the current parliament term expires.
The repeat vote may take place Thursday at the earliest, according to a person familiar with current political talks, who asked to remain anonymous.
-By Leos Rousek, Dow Jones Newswires, +420-222-315-290; leos.rousek@dowjones.com
(END) Dow Jones Newswires October 11, 2011 15:46 ET (19:46 GMT) Copyright (c) 2011 Dow Jones & Company, Inc.- - 03 46 PM EDT 10-11-11
|
|
|
Post by Clinton SPX on Oct 12, 2011 11:51:21 GMT -5
Now why would he say this? Everything is fine.
10-12 12:33: Portuguese president says the situation requires more from the ECB...
|
|
|
Post by Clinton SPX on Oct 12, 2011 12:32:57 GMT -5
Submitted by Alexander Gloy of Lighthouse Investment Management
To EFSF Or Not To EFSF - A Franco-German Drama
(with simultaneous translation from Euro-lingo into plain English)
4:05: “Direct help for bank recapitalization from EFSF is not at all doable” – German Economy Minister (Translation: “Frogs, I thought we told you already, your plan doesn’t fly”) 6:00: “It is important to us that all banks are equipped for all eventualities and must go to market first for capital” – German Finance Minister (Translation: “May be they’ll understand if I say it – nobody seems to take Roesler serious”) 6:19: “There is no doubt on the soundness of French banks” – French government (Translation: “Hopefully the dim-wits at Agence France-Presse will print my statement without embarrassing typos”) 6:20: “Private capital must have priority, but French state is ready to respond to banks’ capital needs is necessary” – French government (Translation: “Nobody will figure out that this does not match what I said one minute ago”) 6:20: France wants collective, European response to the recapitalization of European banks – French government (Translation: “Let’s see if the Germans respond if I say this”) 6:31: France won’t use the EFSF to recapitalize banks – French government (Translation: “Okay okay, no need to scream like that on the phone”)
|
|
|
Post by Clinton SPX on Oct 12, 2011 17:46:16 GMT -5
France will Not Use EFSF to Recapitalize Banks; Slovak Government Falls, EFSF to be Approved Anyway; Greek Haircuts of 30-50% Coming; EU Seeks Magic In what may be a worst of both worlds scenario, the Slovac government did fall but the EFSF will pass in a second vote later this month. Everyone has finally admitted that the 21% haircuts taken so far on Greek bonds is insufficient. However, the talk now is of 30-50% haircuts, and that is still insufficient in my opinion. In France, Valérie Pécresse, Minister of the Budget says the EFSF will not be used to recapitalize banks. This trifecta of news was stock market friendly, at least for now, judging from the reaction. However, longer-term it solves nothing. France Will Not Tap EFSF The Wall Street Journal reports France Won't Tap Rescue Fund to Shore Up Banks Speaking after the weekly cabinet meeting, Valerie Pecresse said once the expanded European Financial Stability Facility is approved, it "will be able to lend to certain countries that need to recapitalize their banking system, but France won't make use of the EFSF." Private shareholders should contribute to the recapitalization of lenders, and the government will intervene only if necessary, Ms. Pecresse added. "If public funds are necessary, the French state stands ready to respond to a demand for public funds for the banks," she said. French officials stress that a vehicle backed by France's sovereign guarantee and used to recapitalize the banks in 2008 is still active and legally operational. French banks have since reimbursed the funds. Ms. Pecresse said France will be pushing for a common European plan for banks, and that a collective rule will be adopted at a later-than-planned euro-zone summit Oct. 23. "Europe must show its solidarity in the face of market nervousness and give itself a collective rule in terms of equity, of recapitalization and of soundness," she said. "The collective position will be adopted in Brussels in the framework of the European council." The new standards, Ms. Pecresse said, will be drafted taking into account market tensions, and not necessarily Basel III standards, a set of rules approved last year that require banks to hold more and better quality capital in reserve as a buffer against market shocks. Pécresse Translated Europe will ignore Basel III if it's convenient (and it will be very convenient) If French banks need to be recapitalized (and they will), look for taxpayers to be put at risk via a 2008 bailout mechanism still in effect Slovak Government Falls The Telegraph reports Slovakia rejects enhanced bail-out fund, government falls Slovakia's lawmakers have rejected a revamp of the eurozone's European Financial Stability Facility (EFSF) rescue fund in a crunch vote that also toppled the country's centre-right government which had staked its future on the motion. Only 55 of 124 lawmakers present in the room voted in favour, while nine were against and 60 did not vote, effectively blocking the fund and toppling the four-party coalition cabinet of Prime Minister Iveta Radicova. The country's leaders said earlier they would try to pass the EFSF revamp in a repeated vote with support from the opposition, but no date has been fixed for that vote yet. "What we are deciding on today is the good name of Slovakia, reliability, where it will belong... or if we exclude ourselves from the community of the successful," Prime Minister Iveta Radicova said ahead of the vote. "I beg you, trust this government... the interests and reliability of Slovakia are the most valuable things I know, I have, I offer," she added, her voice trembling with emotion. Richard Sulik, the rebel leader of the coalition's minority member, the Freedom and Solidarity Party, abstained from the vote. He told the parliament: "I'd rather be a pariah in Brussels than have to feel ashamed before my children, who would be deeper in debt should I back raising the volume of funding in the EFSF bail-out mechanism." A tip of the hat to Richard Sulik for standing with principles instead of opting for more bailouts. Slovak is the first, but not the last government that will fail over these bailouts. The sad thing is, the vote will pass anyway. Europe Eyes 30-50% Losses for Banks Reuters reports Europe eyes bigger Greek losses for banks Ahead of a make-or-break summit of European leaders on October 23 at which a comprehensive new Franco-German crisis plan is expected to be discussed, four euro zone officials told Reuters that a "haircut" of between 30 and 50 percent for Greece's private creditors was under consideration. That is far more than the 21 percent loss they had asked banks, pension funds and other financial institutions to accept in July as part of a second rescue package for Athens. Game Easy to Spot This game is easy to spot. I called it long ago. Note the range 30 to 50. I figured 30-35% even though 60% or bigger losses are called for. The more blood the EU tries to get blood out of a turnip, the harder Greece will ultimately fall. By setting expectations as high as 50%, then coming in below that (via fantasy projections as to when Greece will be back on its feet), EU officials are attempting to game market psychology. Perhaps I am wrong and they will opt for 50%. We will know soon enough. EU Seeks Magic Solution and Additional Powers Bloomberg reports Barroso Seeks More Firepower European Commission President Jose Barroso called for a reinforcement of crisis-hit banks, the payout of a sixth loan to Greece and a faster start for a permanent rescue fund to master Europe’s debt woes. Barroso said Europe needs to get more out of the the 440 billion-euro rescue fund, set to obtain additional powers once Slovakia completes the 17-country ratification marathon. Officials are working out how to scale up the financial clout without requiring another round of parliamentary approvals or tapping the ECB’s balance sheet. The central bank has ruled out granting the EFSF a banking license. “The EFSF must be more than just a firewall,” Barroso said. “It should have real firepower. We should maximize its capacity.” Barroso repeated a call for governments to set up the permanent fund, the European Stability Mechanism, by mid-2012, a year earlier than planned. Message to Barroso and other EU clowns: The German supreme court already rejected a a permanent mechanism and it also rejected use of leverage. Even were that not the case, Slovak shows what happens to governments when they try to force things through. German Chancellor Angela Merkel will fall, the Italian Prime Minister will fall, as will the Greek Prime Minister, and perhaps French president Nicolas Sarkozy falls. What part of that do you fail to understand? There is no magic bullet and the Eurozone will not survive intact. Mike "Mish" Shedlock globaleconomicanalysis.blogspot.com
|
|
|
Post by Clinton SPX on Oct 13, 2011 0:05:48 GMT -5
New York Times sez.
Europe Tells Its Banks to Raise New Capital By STEPHEN CASTLE Published: October 12, 2011 RECOMMEND TWITTER LINKEDIN SIGN IN TO E-MAIL PRINT REPRINTS SHARE BRUSSELS — European banks need to raise more capital to protect themselves against losses on sovereign debt or politicians will do it for them, the European Union said on Wednesday. Enlarge This Image
Yves Herman/Reuters José Manuel Barroso, the European Commission president. Multimedia Interactive Feature Tracking Europe's Debt Crisis Barroso: Banks Need to Be Strengthened Related
Euro Fund Deal Reported in Slovakia (October 12, 2011) As Greece Avoids a Default, Recapitalization Plans Emerge for European Banks (October 12, 2011) Add to Portfolio
Societe Generale BNP Paribas Go to your Portfolio » Under proposals outlined by the European Commission president, José Manuel Barroso, banks would be required to temporarily bolster their protection against losses as part of a plan to restore waning confidence.
Mr. Barroso also called on the 17 European Union members that use the euro to maximize the capacity of their 440 billion euro ($600 billion) bailout fund — a clear hint that he favors leveraging the rescue fund to increase its firepower to as much as 2 trillion euros ($2.8 trillion).
Leveraging the fund was advocated by the United States treasury secretary, Timothy F. Geithner, to ensure that troubled European countries had access to affordable financing as they tried to reduce their debt.
The Treasury Department pressed that point on Wednesday during a briefing ahead of a meeting of finance ministers of the Group of 20 on Friday and Saturday in Paris, which Mr. Geithner will attend.
Europe needs “a firewall that has the resources and capacity” to ensure that the crisis that started in Greece does not spread to bigger countries, Lael Brainard, the Treasury under secretary for international affairs, said at the briefing. The euro zone is entering a critical countdown, with investors in financial markets expecting European officials at a summit meeting on Oct. 23 and leaders of the Group of 20 at on Nov. 3 to endorse plans to resolve the region’s debt crisis.
On Wednesday, Slovakia reversed course and struck a political deal that should ensure approval of the bailout fund, the 17th and last vote required. European officials, who had been watching closely, greeted the breakthrough with a mixture of relief and frustration and were able to turn their attention to the banks.
Extra capital for European banks should be raised first from the private sector, then from national governments, according to the proposal. Only when those avenues have been exhausted should a euro zone bailout fund be tapped, it said.
Banks should not be allowed to pay dividends or bonuses until they have raised the additional capital, according to the proposal.
The plan put forward Wednesday did not put a figure on the capital reserves that would be required. That omission contrasted with the more specific plans circulating in France and among European banking regulators for a minimum capital reserve of 9 percent of assets.
Internally, the European commissioner responsible for financial services, Michel Barnier, argued that the new floor for capital should be set by the European Banking Authority, not the commission, said one European official, who spoke on the condition of anonymity because of the confidential nature of the government discussions.
On Tuesday, Alain Juppé, the French foreign minister, told the French National Assembly that several leading French banks that were deeply exposed to the sovereign debt of Greece and other Southern European countries — like BNP Paribas, Crédit Agricole and Société Générale — would move to increase their capital reserves, initially by using their own revenue or through the financial markets. Money from the government would be drawn upon only as “a last resort,” he said, according to Reuters.
Mr. Juppé said the move, which was agreed upon with Germany during talks Sunday, meant that the banks’ best buffer against losses, known as core Tier 1 capital, would increase to 9 percent or more by 2013, from 7 percent now.
The European Banking Authority has also suggested a 9 percent floor, according to European Union officials. The agency declined to comment on the figure Wednesday.
The document released Wednesday by the European Commission called for “a temporary significantly higher capital ratio of highest-quality capital after accounting for exposure” to sovereign debt in systemically important banks.
One European official said that the recapitalization proposal essentially meant that banks were likely to have to meet the requirements laid down under the so-called Basel III international standards for banks more quickly than first expected, although temporarily. Instead of reaching the specified level of capital by 2019, these goals will have to be reached “within months,” said the official, who spoke on condition of anonymity.
Ms. Brainard of the United States Treasury Department said that while Europe had finally come around to the idea that its banks need more capital in case the crisis worsened, “it’s still one piece of several actions that need to happen as part of a comprehensive plan” to prevent contagion from a Greek default or worse.
After Lehman Brothers failed in September 2008, the United States took swift action to ensure its banks had a strong cushion of capital, a move that Ms. Brainard said restored confidence and helped the banks turn around relatively quickly.
“At the time, it was seen as a risky endeavor, but it turned out to be just the medicine the market needed,” she said. “The same logic lies behind Europe’s efforts.”
On Wednesday, Mr. Barroso argued for the quick release of 8 billion euros in loans to Greece from international lenders, without which the government in Athens could default within weeks.
With the euro zone’s temporary bailout fund, the European Financial Stability Facility, set to gain new powers to help recapitalize banks, the issue of whether to use it has divided France and Germany. Mr. Barroso called for the early introduction — next year if possible — of the permanent euro zone bailout fund that is to replace the facility in 2013.
France fears that it could lose its triple-A credit rating if it has to inject billions of euros in taxpayer money into its banks. That would be a huge political setback for President Nicolas Sarkozy, who faces a re-election campaign next year.
But Berlin is reluctant to use European funds to recapitalize banks that compete with its own financial institutions.
|
|
|
Post by Clinton SPX on Oct 13, 2011 0:09:08 GMT -5
The Math Behind The Greek Myth Submitted by Tyler Durden on 10/13/2011 - 00:23 Bond Budget Deficit Greece Gross Domestic Product Recession The Greek January – September budget deficit was EUR 19.16bn versus 16.65bn same period last year (+15%). This only includes the central government. The initial deficit target for 2011 was EUR 17bn. We blew past that after only 8 months. The revised target (July) is now 22bn (9.5% of GDP). Latest estimate from the Greek government: 8.5% deficit (19.5bn) for 2011 (instead of 7.6% or 17bn). While 2011 revenues are trending below 2010, expenses are trending higher. Despite all the austerity measures, Greece is still spending 150% of its revenues. Of course, the Ministry of Finance sees a reduction of the deficit to a miniscule 2.6% of GDP by 2014 as revenues rise and expenses come down. How is that possible? Somehow, after spending four consecutive years in recession (2009-2012), the economy will rise like a phoenix and grow by 5.8% in 2014.
|
|