[闲谈] This is why market reversed all gainings

BigFool

German Finance Minister Shoots Down Levered Euro-TARP
Published: Thursday, 29 Sep 2011 | 10:55 AM ET Text Size By: John Carney

So much for the idea of a levered Euro-TARP.

German Finance Minister Wolfgang Schaeuble told lawmakers the European Financial Stability Facility  would not be used to create a leveraged bailout vehicle, according to Dow Jones Newswires.   

Schaeuble was attempting to reassure members of the Free Democrat party as they prepared to vote on an expansion of the EFSF. The lower house of Germany’s parliament approved the expansion Thursday. The Free Democrats are part of the governing coalition that, along with the Christian Democratic Union and the Christian Social Union, control Germany’s parliament.

Financial regulators from the United States had reportedly been urging European counterparts to consider a leveraged fund that would issue its own bonds and use the proceeds to buy sovereign debt  of distressed euro zone nations. Earlier this week, reports suggested that plans to create this fund were underway.

Now it seems like the idea is dead.

Otto Fricke, the budget policy spokesperson for the Free Democrats, described the idea of a levered fund as “nonsense.”

BigFool

if this is true, and there is no way for ECB to involve in any bailout action, Europe is dead and so all the world.

BigFool

if you believe in this theory, I have no doubt you will get killed on the bear side. The demise of euro will trigger a domino effect on european sovereign debt and the consequences are fathomless. With spx 500 companies getting 45% of their revenue from outside US, I don't think FED wants to see that.

Greece is going to get tranche soon, once they get it, we can at least have 6 months peace days,  CDX on Italy, Portgul and Spain all dropped, though German Finance Minister ruled out the possibility of leverage of ECB money, ECB will intervene if later things become uncontrollable. I want to reiterate it, printing money CAN solve the problem.

I admire you have the determination of staying on the sidelines for 5 months, however it is a pity to see you re-enter the market with a bearish bias, it will make your staying outside the market completely pointless. You could take advantage of the sell-off and make a fortune.

This is exactly what the FED wanted. Kill the Euro, set up another one similar, but with FED inv ...
yijianmei 发表于 2011-9-29 15:13