The "up-to-the-minute Market Data" thread

Clutching At Desperation Straws - China To Bail Out Europe... Again

Hours after the details of the Euro Summit were released when it became clear it will be yet another failure, following a drop in the Euro Basis Swap by 10 bps to 127 bps, to week earlier levels, and not following a rise in the all important EURUSD, it was time to recycle old rumors all over again, knowing full well some positive market reaction had to be engendered or else the entire rally of the past two weeks would be undone, here comes the latest regurgitation of the tried and (very much un)true "China to Rescue the World"TM rumor, this time from Reuters.
[...]
So to summarize: details are unknown, China growth is collapsing, home prices and inflation are supposedly plunging, and it is now conventional wisdom that the PBoC will have to bail out China all over again from a hard landing, but... the key personnel for a fund that may or may not exist and which will have no impact whatsoever on the $2 trillion in rolling European debt over the next two years, have been selected? And futures are up on this?

And People (Or Computers) still believe it,looking at the Markets...how many times has this "China bailing out Europe" Rumor been used now? Whats next? Brazil bailing out Europe,again? And after that,India?

Seems like they want to at least get into the Weekend without everything breaking apart...

reply to post by Shenon


Yeah . . . I was wondering too this morning how long it would be until the markets realize that it's just a fancy new bag holding the same pile of crap that existed yesterday . . . and the day before that . .. . and the day before that . . .

Yup, monitoring CNBC and a guest commentor said things are calming today and for the weekend, but "expect volatility to return in a storm next week".

Live EU Summit:

Live reports & analysis

Norman Smith Chief political correspondent, BBC News Channel says: "We really are, at the moment, in a position we have never been in before. John Major never walked out of the negotiating room. Margaret Thatcher - although she pushed very, very hard and metaphorically swung the old handbag - never walked out either. David Cameron has, and that's a first. It's the first time we have been on our own, so it's an almighty big call by him and we genuinely don't know how it's going to play out."

More fuel for the fires of market volatility.


[edit to add:]

Check this out:

David Cameron got quite a tongue-lashing from President Sarkozy in last night’s European Council session. The French President said to Mr Cameron that they were all gathered to try to sort out the eurozone and he was coming along with irrelevant demands to have an offshore centre taking capital away from the rest of Europe. EU sources say they now strongly expect President Sarkozy to renew his efforts to clip the City of London’s wings...

S ource


Agincourt, anybody?

reply to post by pause4thought


The French president wants the financial capital to be in France not Britain so I think his efforts are to bring the banksters to france so they can have a nice big party together.
I think Cameron is right to stay far away from Europe as possible.
BUT, at the same time britain has isolated itself from the rest of the world which is financial suicide!
What happens to britain after this I have no idea but this cannot be good!
Cameron has obviously done this to protect the citys banksters interests, but either way staying away from the european ticking time bomb is the best thing to do. After all the europeans just want more money.
But its one of those situations where you're damned if you do and damned if you dont.
This deal seems incredibly anemic imo. Europe has a huge debt problem and very little has been agreed to address Europes situation.
This will not prevent europes collapse.

Printing presses on standby to beat euro’s demise

Central banks in eurozone countries are making contingency plans for the possible collapse of the euro.Demand for money-printing services is expected to soar as old national currencies prepare for a come-back.

The Central Bank of Ireland is doing an evaluation of its need for additional printing capacity in case it has to go back to producing Irish pound notes, according to the Wall Street Journal.

The bank is one of several in the eurozone with printing capabilities of its own, currently used to churn out new euro bills. Last year, Ireland printed 127.5 million 10-euro notes.

However, the bank’s printing capacities may not meet demand should the country need to come up with a hasty replacement for the euro. Officials are discussing reactivating old printers or enlisting a private contractor to do the job, a knowledgeable source told the newspaper.

Mwahahahaha.

And Cameron wants to stay out of the deal, not for the ``good`` of the UK but so that banks can continue to do their crap. Remember that AIG blew up because of their British operation, where there's basically no rules to trade CDS/derivatives...and Cameron's bosses want it to stay that way.

And if the sellouts in governments across Europe succeed into making a ``super EU`` where Germany/France controls everyone's budget, it's gonna end up with war down the road, I can guarantee you that.

reply to post by Vitchilo


wow, that doesnt sound good at all.

I don't buy this rally in the markets today, I don't think europes problems are any where near to being solved.

reply to post by Vitchilo


Europe wont allow France or Germany to dictate.

The banks are regulated enough, with Dodd Frank on the way, the Uk is avoiding over regulation. Banks will flock to UK as they already have, branches abroad will be migrated to where regulation is less.

Wanna bet next thing will be isolation (sanctions) of GB.

I know this scenario.

Originally posted by DannyboyUK
reply to post by Vitchilo

 

Europe wont allow France or Germany to dictate.

The banks are regulated enough, with Dodd Frank on the way, the Uk is avoiding over regulation. Banks will flock to UK as they already have, branches abroad will be migrated to where regulation is less.

never underestimate the predictability of stupidity.

put enough pressure on people not used to discomfort and watch them squirm.

they will cave in and give germany what they want, controlling power over them.

the broke Eu countries have their backs to a cliff with Germany and possibly France standing in front of them with a gun and shackles. here are the options. slavery or death.

what do you think a bunch of softc#k yuppies are going to choose? the honorable path?? lol they wouldnt know honor if it slapped them in the face. No they will wait till the last minute and then accept slavery and in doing so doom us all. it is their nature to survive at all costs.

reply to post by TiM3LoRd


There is that. But then again there's the Greek spirit.

All it takes is one stray dog to unite the masses, and...

reply to post by pause4thought


time will tell my friend time will tell

Originally posted by DannyboyUK
reply to post by Vitchilo

 

The banks are regulated enough, with Dodd Frank on the way, the Uk is avoiding over regulation.

You must be joking. Have you read this thread or ??

To recap : Dodd Frank is a joke and banks are not regulated enough considering all they are doing. Banks committing crimes are above the law, they have shown this time and time again.

I am not sure if this means anything or not but... my father was saying that the US would not see huge inflation until after the election. He said election years the economy will go up a bit. Our economy would be seriously affected in Europe crashed. Having said that, we saw the US basically agree to start up the printing presses to help out Europe.

So what do you all think? Elections, Europe, how much to stabilize, how much is reality?

reply to post by DannyboyUK


Britain won't allow France or Germany to dictate.. everyone else is following like well trained hounds. An odd partnership, but France through history rarely ever held on to any self respect or dignity, Germany has effectively conquered Europe without having to resort to war this time.

If Britain had any common sense they'd leave the Eurozone entirely..

I can't wait till it's affordable to visit Europe again .. this debacle with the Euro currency this past decade has caused such massive inflation in "developing" economies it makes it impossible to actually visit and get any value out of it. When thing go back to the way they were, things will normalize and small countries with small economies won't be drastically inflated by a faux currency.

reply to post by AuntB


Europe collapses: USD goes up, increasing in value.. bad for corporate profits, good for you and me.

Global economy will be shocked, major banks will fail, but the level of effect it has on us as a nation depends on 1. do we bail out bad banks again .. and 2. how much instability is actually created in Europe? Europe only started using the Euro a little over a decade ago .. before they used their national currencies, and if you remember the 90's was the last era of prosperity for the United States ...... so .. what effect will it really have? IMO .. none. The only dramatic effect on Europe will be pricing, inflation and CONTROL. Without the Euro the Eurozone is toothless, without a ECB it has no real power.

Election years play no part in economies.. they sometimes effect stock markets, sure, but only briefly. Presidents don't have much effect on economies.

reply to post by TiM3LoRd


Is one big problem with what Germany and France are offering to the EU countries, austerity is what the people will fear the most, that is what is been offered, cuts in pensions, cut in retirement, salaries and is not going to be any economic growth because nations are so in debt and have to pay the Union back the interest.

No, people are not going to give away anything because their government dined in luxury for years while been hooked on the big loans and big scam that is the EU.

Now time to pay the creditors while squeezing the citizens, oppression never works.

Eurozone banking system on the edge of collapse

The European Central Bank admitted it had held meetings about providing emergency funding to the region's struggling banks, however City figures said a "collateral crunch" was looming.

"If anyone thinks things are getting better then they simply don't understand how severe the problems are. I think a major bank could fail within weeks," said one London-based executive at a major global bank.

Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as US Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

And let's mention that Cramer says that all will be alright. If you know anything about Cramer, you know that the exact opposite of what he says is the truth. So almost time to panic.

reply to post by Vitchilo


Cramer's mother's house could be on fire and he'd call her and tell her to relax, fire doesn't burn.

The guy is a tool. Personally I believe he should be a Federal prison for the "advice" he gave millions of people to buy Bear Sterns right before its demise.

www.thedailyshow.com...

Anyone who hates Cramer as much as I and I'm sure you do .. will love to watch Jon Stewart absolutely shred him to pieces.

There are some new PDF from Martin Armstrong

Coordinated Central Bank Intervention

It is clear that the Sovereign Debt Crisis in Europe is becoming really serious in order to warrant such a public show of trying to flood the system with money. All our political sources in Germany have confirmed that if it is a choice between the failure of the Euro and inflation, there will be no question that the latter will prevail. Today’s actions confirm that information.

So, he is sure they will go for inflation. Inflation will squeeze all blood from its victims.


You can download his texts from here:

www.martinarmstrong.org...