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Greek parliament gives final approval on austerity bill
GREEK BONDHOLDER LOSS WILL BE 60%, ANA CITES VERHOFSTADT SAYING
As the following chart from Reuters indicates, annotating the relentless rise in Italian yields (which have about 100 bps in buffer from full out Eurozone collapse: if the 10 Year BTP hits 7.00% it's game over), the half life of the mere meeting in terms of favorable impact is now negligible and in fact, negative. Just like BOJ (and, some would add, Fed) interventions in the market now do more harm than good, so hollow Eurozone meetings without any actual resolution, simply make the Eurozone troubles that much more acute. Keep a close eye on the BTPs. They are already at 6% following last week's tumble first documented on Zero Hedge. If the price drops that much more, that will be it for the EMU experiment.
Italy budget targets reachable but political unity needed according... to the director-general of the Bank of Italy, Fabrizio Saccomanni, said on Tuesday.
S&P affirms Canada's sovereign credit ratings at 'AAA/A-1+'
Chinese diplomat in Brussels says China supports EU efforts to deal with debt crisis, but there is nothing concrete on investing in EFSF SPV
According to head of Italian bank foundation association, Italian banks are solid, and do not face same crisis as other European banks
Merkel: No one should take another 50 years of peace in Europe for Granted
* MERKEL SAYS JUSTIFIABLE TO MAXIMISE EFSF FIREPOWER
* MERKEL SAYS GERMANY `IS NOT THE NAVEL OF THE WORLD'
* MERKEL SAYS EURO CAN'T BE ALLOWED TO FAIL
* MERKEL CITES 'HISTORIC DUTY' TO PRESERVE EUROPE, EURO
Merkel Says EU Treaties Must Be Changed, via BBG - this is Germany showing everyone who is boss.
* Not looking for a rerun of Lisbon Treaty changes
* Changes intended to target chronic debt offenders
* Lawsuits must be possible against EU debt offenders
* Too little regulation led to crisis
* Reiterates backing for financial transaction tax, Germany will do ‘everything’ to push EU plan on tax
Merkel Says Will Also Look at Regulation of Hedge Funds
* Says German short-selling ban was successful
When all else fails: use diversion, scapegoat the one you hope to bail you out:
* MERKEL SAYS U.S., JAPAN ALSO SUFFER UNDER EXCESS DEBT
* MERKEL SAYS `EUROPE IS NOT ALONE' IN SHOULDERING DEBTS
* MERKEL SAYS CRISIS `WILL OCCUPY US FOR YEARS'
And when you cut down to the chase, it is really the G20's fault:
* MERKEL SAYS G-20 HAS ROLE TO PATROL EXCESS DEBT AMONG MEMBERS
According to a senior EU source, IMF thinks 60% Greek debt write-down is not enough, and it should be 65% or more
* PARLIAMENTARY SOURCE SAYS GERMANY'S BUNDESTAG LOWER HOUSE OF PARLIAMENT APPROVES MOTION TO STRENGTHEN EFSF VIA LEVERAGE
* 503 vote in favor of the measure; 89 voted against, while four abstained in Berlin today - so this is a surprise we take it?
* EU TALKS WITH BANKS ON GREEK BOND LOSSES SAID TO BE DEADLOCKED
* EU TALKS 'PAUSED' ON A DISPUTE ON INSURING RISKS OF NEW BONDS
* EU official says dispute centers on insuring risk of new bonds.
* Involuntary Greek haircuts can’t be ruled out
* EU Said to Consider Limits on EU-IMF Loans in 2nd Greek Rescue
Originally posted by DangerDeath
Europeans hopes lift Street...
* EU Official Says Bank Heads Won’t Be at Summit Table Tonight
* EU leaders may frame agenda for more bank talks on bondholder losses in 2nd bailout
pkg for Greece.
* Says IIF doesn’t entirely represent private banks
And the kicker:
* Says Greek debt swap would take several weeks
Published: Wednesday, 26 Oct 2011 | 7:40 AM ET
European Union governments may give guarantees to banks seeking funding in order to avoid a credit crunch and to keep them lending to the economy, according to a draft statement from EU leaders who meet in Brussels on Wednesday evening.
The statement also said there was "broad agreement" on bolstering the capital ratio of banks to 9 percent after taking into account the market worth of their sovereign debt holdings, but it gave no overall figure for recapitalising EU banks.
"This quantitative capital target will have to be attained by June 30, 2012,"
few are talking about another possibility… GERMANY leaving the EU.
One who is talking about this is Dr Pippa Malmgren, a former economic advisor to George W. Bush and a Director for Deutsche Bank. According to Malmgren, Germany has already ordered the printing of Deutsche Marks in anticipation of a possible withdrawal from the EU.
Malmgren states, "the social contract between Germany's citizens and its leaders preclude (debt monetization) given their history." She adds that, "Germany has already begun to emphasize the need for a new EU Treaty that would compel fiscal harmonization, penalties for those that break the Maastricht Treaty rules and other undertakings that would harden Europe's defenses against economic default risks going forward."
Germany is widely held to be the strongest balance sheet in the EU (though even the Head of its Central Bank admits that the country's real Debt to GDP is over 200%).
However, compared to the PIIGS, Germany is relatively rock solid from a fiscal point of view. It's also the largest economy in the EU. So if the Germany pulls out (70% of Germans believe the Euro has no future) then Europe will experience a wave of defaults starting with Greece and spreading throughout the PIIGS.
We're already seeing hints of this occurring. Germany Vice Chancellor, Philip Roesler said on September 11 that Germany won't participate in any more bailouts and that any German politicians who approve more bailouts is committing political suicide.
We also have reports of Sarkozy and Merkel screaming at each other in recent meetings. France has announced plans to possibly nationalize several banks just "in case." And Germany has dropped more than a few hints that it's fed up with the situation
Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.