It is now official: EUROPE UNDER THE GUIDANCE OF THE TWO DEANS OF PSY-OPS HAVE A PLAN FOR RECAPITALIZING THE BANKS AND BOLSTERING THE EUROPEAN FINANCIAL SYSTEM. The world heaved a sigh of relief that the Sunday meeting in Berlin resulted in a PLAN. The intricacies of what the plan entails are a secret, but for today the markets reacted positively, grasping for any sense of hope. The world’s equity markets reacted as if EURO’s were being air dropped all over the continent. The BUNDS were sold as the reallocation trade sent money exiting the havens in search of risk and the possibility of higher returns … at least for a day.
Posts Tagged ‘UK’
Notes From Underground: CNBC-Movement in the Markets
March 22, 2011
Click on the image to watch Yra on CNBC Tuesday morning.
Notes From Underground: ECB agrees to accept all dogs and junk
May 3, 2010In an effort to ensure against a solvency crisis in the EU, the European Central Bank has agreed to accept all levels of Greek and other sovereign debt regardless of its investment rating. Greek debt that has been downgraded to junk status is being readily accepted at the ECB lending facility and no haircut on the value is being taken. The next step is for Trichet and company to actually start purchasing sovereign debt in what would be a move for quantitative easing. The ECB is not there yet but by accepting Greek debt as collateral, the ECB is one step away from total abdication of its role as the defender of the EURO.