It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
If the political meltdown in Greece tell us anything, it is that the eurozone crisis has gathered an unstoppable momentum and the ruling elites can’t do anything about it.
Whatever decisions are made by the major economic powers at the G20 summit in Cannes, the die, as Julius Caesar is reported to have said on crossing the Rubicon, is well and truly cast.
The unravelling of the second phase of the financial meltdown that got under way in 2008 is running ahead of and proving stronger than the half-baked decisions made by political leaders from the US to Europe.
It is not a matter of if but when the euro’s claim to be a stable currency that rivals the dollar and sterling falls apart. The debt contagion has already embraced Italy, the world’s eighth largest economy, with France and Spain considered next in line.
Italy has the second largest nominal government debt outstanding in the eurozone, at €9.3 trillion. “Italy is a banana republic that didn’t depend so much on foreign capital in the past, but now it does, and markets are less forgiving,” said Daniel Gros, the director of the Centre for European Policy Studies in Brussels. “Italy is in the danger zone; that is quite clear now.”
In defending the limited political freedoms we have against the Merkozy and others, it is clear that we need something better. A new political and sovereign power that puts into practice the very meaning of the term “democracy”, which ironically comes from the Greek words “demos” (people) and “kratos” (power), will be needed to overcome the imminent catastrophe.
-Asian markets were up in overnight trading with the Hang Seng gaining 3.12%. after a huge sell-off yesterday. European markets and U.S. futures are lower ahead of the U.S. market open.
-G20 chiefs expressed annoyance at Europe's inability to resolve its two-year financial crisis
-ISM services data for Europe was released this morning
-Employment data for October was released at 8:30 AM ET
-In more jobs news, Canada lost 54,000 jobs in October and its unemployment rate surged to 7.3%.
-The earnings news, AIG, reported a whopping $4.1 billion net loss or $2.16 per share, in the third quarter.
-Meanwhile, Linkedin released Q3 results after the bell yesterday. The company posted less-than-expected net loss of $0.02 per share, on revenue of $139.5 million. And Berkshire Hathaway Inc. could post its first quarterly decline in book value in over a year.
-Groupon is pricing at $20 per share, which will allow it to raise $700 million from its IPO today
-Bank of America is planning to issue $2.8 billion of new shares in a move that will dilute its shareholder base. The troubled bank could issue up to 400 million new shares that would replace preferred stock and debt
Originally posted by marg6043
reply to post by DangerDeath
Is not rant, actually I enjoy very much your post, when you vent your frustrations base on the way you see corruption running rampant within corporate governments of the world.
I feel the same too, perhaps that is why we are here in ATS trying to so hard to expose this corruption, but as usual we are not even big enough to cause a stir, withing the status quo or we will not be here today to keep posting.
Originally posted by AuntB
reply to post by DangerDeath
Well good morning to you all. Yesterday DangerDeath left me on a cliff by ending a post with, "unless...." today DD, you are really almost overwhelming, I give you a thumbs up. You have given me much to read and ponder. I watched the number come out this morning and still have yet to get a handle on what it all means.
Tomorrow is close your big bank account day. Will it matter? Will it work? All I can think is if the banks lose business it just means they will get more gov't money and the fat cats get another big bonus and I am still in the same place.
As of this morning, a 16 month high of €275 billion in cash had been parked with Mario Draghi, an amount which is promptly removed from the Keynesian money multiplier myth, and which confirms that there is a behind the scenes liquidity panic unlike anything we have seen since Lehman, and in fact, as the second chart from Sean Corrigan showing ECB fixed and deposit usage as well as Fed reverse repo and overall foreign bank cash parking, the liquidity in the market now from a European point of view, contrary to what broken indicators may show, is the worst it has ever been with nearly $1.6 trillion in liquidity removed from broad circulation and parked with either just the Fed or the ECB.
Two days ago we reported that that relentless driver of global growth - exports - finally succumbed to reality, as slowly but surely the paradigm of everyone exporting to someone else with magically nobody importing, logically collapsed. This is now followed by German manufacturing, that traditional and only source of strength in Europe, which half an hour ago was reported to drop 4.3%, compared to an expectation of a 0.1% gain. In other words, as the chart below shows German factory orders have just suffered their worst three, post-Reunification months outside of the late crash itself, falling at a 28% annualized rate, to take the total back to where it first stood over five years ago. Reaction is swift: Italian and Spanish bonds immediately drop, with the yield returning to 6.23% and 5.52%, forcing the ECB's monetization actions to have to fight not only "speculators" but also reality.
And here is Jon's personal announcement: "I have voluntarily offered my resignation to the Board of Directors of MF Global. This was a difficult decision, but one that I believe is best for the firm and its stakeholders. I feel great sadness for what has transpired at MF Global and the impact it has had on the firm's clients, employees and many others. I intend to continue to assist the Company and its Board in their efforts to respond to regulatory inquiries and issues related to the disposition of the firm's assets." Now, as to how he will avoid questioning by the federal authorities, that is a different matter entirely...
* German Chancellor Merkel says the G20 failed to agree on IMF resources
* German Chancellor Merkel says will make sure that the IMF has sufficient resources, but also new instruments
* German Chancellor Merkel says hardly any countries in G20 have said they will participate in the EFSF
The labor force participation ratio was flat at 64.2%, just off the 30 year low.
* BERLUSCONI SAYS ITALY AGREES TO EU MONITORING
* BERLUSCONI SAYS IMF TO CARRY OUT `CERTIFICATION' EVERY 3 MONTHS
* BERLUSCONI SAYS ITALIAN DEBT HELD MOSTLY HELD BY ITALIANS - like Mario Draghi
* BERLUSCONI SAYS ITALY HAS NEVER HAD TROUBLE SERVICING DEBT
This time it won't be so easy, especially since Moody's just announced it is about to downgrade Erste precisely for this reason. This move also explains why the market is suddenly rife with rumors of a broad Austria downgrade.
State governments across the U.S. are just a few months into their fiscal years and already many fear that tax revenues are running short of forecasts.
Anyone wondering why Axel Weber was passed over when picking the next ECB head in exchange for Goldman plant Mario Draghi, only needs to read a piece from Sueddeutsche Zeitung in which the former German central bank head, and future UBS head, confirms he actually does math.
As quoted by Bloomberg, "Former Bundesbank President Axel Weber said the plan to leverage the European Financial Stability Facility increases the likelihood that tax payers have to step in, Sueddeutsche Zeitung reported. Germany’s public debt would rise to 135 percent of gross domestic product if Italy and Spain were to tap the EFSF financial backstop, the newspaper cited Weber as saying in a speech in Frankfurt. As the sole guarantor to the EFSF, Germany could end up with a debt of 314 percent of GDP in an extreme case, Weber said."
"Thousands of HSBC customers faced the ultimate embarrassment of having their cards declined this afternoon as the bank suffered a 'worldwide meltdown'. Fourty seven countries have potentially been affected in the world's second largest bank. Cards were rejected at tills, cash machines read that withdrawal limits for today had been reached, and the card enquiries phoneline was also down. Unsurprisingly there was pandemonium in HSBC branches up and down the country as people rushed to find out why their cards had rejected." Sure enough, a few hours after this started we get this: "HSBC SAYS AWARE OF `SOME PROBLEMS' ON ITS BANKING NETWORKS"
IMF's Lagarde says sees new credit lines for countries outside Europe
President Obama says G20 worked to avert another depression
Originally posted by Vitchilo
I'm pretty sure the Italian bond spread closed at 454 points... above 450... that means (if they follow their own rules and regulations) that margins on Italian debt will be raised, blowing up banks in Europe.
Game over for Europe. (if they actually raise the margins which they might not since they are a bunch of corrupt bastards)
Also, coincidence that this happens on FRIDAY?? So even if margins are raised, they have all the week-end to cook the books/ask for money from governments and the ECB...
We shall see if they raise rates and what happens monday.
* Friday, Nov. 4: Greek government confidence vote.
* Monday, Nov. 7: Meeting of Eurogroup finance ministers. EFSF issuance expected within two weeks of this date. IMF/EU officials start second quarterly evaluation of Portugal’s bailout program implementation. Should also last two weeks.
* Tuesday, Nov. 8: EU finance ministers meeting. Greek T-bill auction.
* Thursday, Nov. 10: Italian T-bill auction.
* Friday, Nov. 11: EUR2.0 billion of Greek T-bills mature.
* Monday, Nov. 14: Italian bond auction.
* Tuesday, Nov. 15: Greek T-bill auction.
* Wednesday, Nov. 16: Portuguese T-bill auction.
* Thursday, Nov. 17: Spanish and French bond auctions.
* Friday, Nov. 18: EUR1.3 billion of Greek T-bills mature.
* Sunday, Nov. 20: Spain holds general election.
* Thursday, Nov. 24: General strike in Portugal.
* Friday, Nov. 25: Italian T-bill/zero coupon bond auction.
* Tuesday, Nov. 29: Italian bond auction. Final Portuguese budget vote.
Originally posted by marg6043
Finally CNBC is showing the protest going on right now in Greece waiting for the vote of confidence, things are going to get very ugly this weekend in that country.
Another thing BofA is taking a hit, stocks falls 4% going on right now.
Something is cooking in our backyards with BofA too.edit on 4-11-2011 by marg6043 because: (no reason given)
According to a minister, expects coalition Greek government by Monday if confidence vote won
Italian finance minister warns Berlusconi if he doesn't resign there's going to be a bloodbath in the markets on Monday