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Yup, Europe is open, and the suiciding has started early.
AUSTRIAN PARLIAMENT COMMITTEE DOESN'T APPROVE EFSF UPGRADE
AUSTRIAN PARLIAMENT COMMITTEE NEEDED 2/3 MAJORITY
As a reminder all countries need to ratify the EFSF, even the weakest links, or else no bailout.
Update: never a dull day as apparently there is a silver lining: from Reuters "Austrian finance minster says parliament only rejected changing the agenda; EFSF vote will be delayed with a special meeting to be called"
European Commission president Jose Manuel Barroso has said he will put forward moves to tackle the eurozone debt crisis, which he called "the most serious challenge of a generation".
He said he would urge the 17 eurozone nations to issue joint bonds, allowing them to borrow money collectively.
"This launch system will create good-paying American jobs, ensure continued U.S. leadership in space, and inspire millions around the world," NASA Administrator Charles Bolden said in a statement posted on the agency's website. NASA officials told the Associated Press they plan to conduct a test flight of the craft in 2017, followed by an initial manned space flight in 2021. The agency then hopes to send manned expeditions to a nearby asteroid in 2025 and to Mars in the 2030s.
IMF: Europe needs to take decisive action now on banking crisis
The International Monetary Fund (IMF) has issued its starkest warning to date that Europe's banking debacle is turning into a systemic threat to global finance and can no longer be allowed to fester.
"This is the most urgent crisis facing the world today," said Zhu Min, the IMF's deputy managing director and China's voice at the institution.
"There is no room for politicians to muddle through: they have to take decisive action today. Banks must be recapitalised and made solvent," he said at the World Economic Forum in Dalian.
The IMF has ruffled feathers in Europe by calling on the region's banks to raise €200bn (£174bn) in fresh capital, with partial nationalisation and by compulsion if necessary, but events are fast vindicating the Fund.
William Rhodes, the former head of the Citigroup and a veteran of debt restructuring in Latin America and East Asia, said Europe had wasted its chance to stop the downward spiral.
"You only have so much time in a crisis before the losses become uncontrollable, as Latin America learned the hard way. But the Europeans thought they were different and refused to recognise the losses. Now they are facing contagion," he said.
"You can't just rely on austerity, you also have to show citizens that there is light at the end of the tunnel," he said, alluding to the Brady plan for Latin America that gave countries enough debt relief and oxygen to recover.
"What's spooking markets is that Europe's leaders say they will do this and that but fail to give a date, and that kills credibility," he said.
Victor Chu, chair of Hong Kong's First Eastern Investment Group, said Europe's policy shuffle had reached the end of the road. "My hunch is that Greece won't deliver so we have to think the unthinkable, and prepare for the worst," he said.
Vincent Van Quickenborne, Belgium's economy minister, said the EU had reached a pivotal moment where it either goes the whole hog as a "United States of Europe" or lets the project fall apart. "It's either unity or divorce, but divorce for Europe would be opening Pandora's Box," he said in Dalian.
The IMF's Dr Min said China too has a serious problem, with credit running at 200pc of GDP. "There is a large potential risk," he said.
Originally posted by Rockpuck
reply to post by Vitchilo
Originally posted by BlackStar99
The rally today is because after such sharp crashes that break through significant moving averages like we've seen the past 2 weeks, prices naturally want to retrace back up to a faster moving average.
The Chinese buying bonds rumor is fueling it even more but if you read what they said, they're not buying bonds until countries stop spending like it doesn't matter.
In what is probably the riskiest escalation of the second credit crisis to date, IFR has released information that was until now speculated, but not confirmed, namely that European banks not only continue to make a mockery out of LiEbor by posting whatever rates they deem appropriate (for the simple reason they don't use interbank funding), while in the meantime going directly to US banks, using shadow, and hence completely unregulated conduits, in the form of private repo arrangements with "at least three of the five biggest US banks." Now where this is interesting is that as Zero Hedge disclosed three months ago, the bulk of the cash generated for the pendancy of QE2 went not to US banks, but to US-based branches of foreign banks. Which probably means that there is a roadblock to repatriating the US held cash (even in exchange for perfectly legitimate receivable debits). Because one would think that this is where the first source of cash for troubled banks would come from. Assuming it hasn't been repatriated already, or is not stuck in some IOER-GC carry trade that generates virtually no return (and when the Fed lowers IOER even more, absolutely no return). Alas this means that the 3M USD Libor which we update every day is substantially under-representing the true funding squeeze in Europe. Even worse, it means that US banks have lent us tens, if not hundreds of billions of cash, in exchange for collateral that could be virtually anything, and which collateral bypasses traditional Fed supervision. As a result, US banks can and will go hog wild in lending repo dollars (at big collateral haircuts but still) to European banks until everyone suddenly runs out of money, and the Fed realizes it has to not only fill traditional liquidity holes, but a massive shadow banking shortfall, precisely the stuff that none other than the Fed has been warning about over and over. Just like in 2008 when the big hit to the system came not from traditional sources of risk but perfectly innocuous and thus ignored money markets, so the same will happen this time, as the biggest crunch will come completely out of left field. It always does.
But there is ABSOLUTELY NO BAILOUT that will save Europe! This whole plan and the
typical austerity policy imposed, which has NEVER worked before and CAUSED the
Great Depression to a large extent, is tearing the social fabric apart at the seams....
...the two words POLITICAL ECONOMY should have
been divorced the moment they met. Just as we have SEPARATION OF CHURCH
AND STATE to ensure freedom of religion, we now need SEPARATION OF
ECONOMICS FROM POLITICS just to survive. This is just NOT working! ...
Something has to give or we are headed into a very dark chapter for mankind all because
they do not comprehend the Business Cycle. If you regulate the banks, then mandate a
balanced portfolio not 70% in real estate loans. Each sector will fail. Government simply
does NOT understand the Business Cycle and that ignorance causes our demise.
Full Article PDF File Here
Originally posted by Agent_USA_Supporter
reply to post by Vitchilo
Hey Vitchilo so why are the stocks higher again today? more false hopes i believe?