Stock Market Today - Intraday discussion - Page 6239  

Germany got approval to do something... What exactly... we still don't know.  This market is sooo frustrating these days...

Today the leaders of the Eurozone are expected to announce grand plans to avoid a disorganised Greek debt default and in turn prevent the EU bloc from disintegrating. The revised plans are expected to feature much bigger than previously announced Greek PSI (private sector involvement) which currently stands at 21%, leveraged EFSF and also an agreement to promote further integration to avoid a repeat of the sovereign debt crisis in the future.

 

 According to latest reports, Germany is pushing for the PSI to be raised to 60%, while banking and governing bodies in other EU countries prefer the PSI to be upped to around 40% in order to avoid any adverse impacts on local banks. EU officials have also demanded that banks prop up their capital cushions to meet a core tier one capital ratio of 9%, which in turn is expected to result in banks raising around EUR 100bln in fresh capital. Analysts and various market commentators have already voiced their concern that a figure of around EUR 100bln will simply fail to address true capital needs and may prompt credit markets to freeze as market participants question the health of the banking system as a whole. In particular it may be the French banks, which are known for their heavy reliance on short-term money markets, that may come under increased scrutiny as investors speculate whether banks will be forced to sell assets or raise capital via other means. However it is worth remembering that the recent rally in the EUR/USD pair is speculated to be in part due to wholesale asset liquidations, which are EUR positive due to FX repatriation, given the post-sale conversion of USDs to EURs. Nevertheless, even though banks may now be cash rich, risks of another credit crunch may not have vanished since smaller banks will be forced to turn to respective governments for assistance and be forced to restructure operations to escape filing for bankruptcy. According to Credit Suisse, banks in Europe face capital shortfall of EUR 400bln and anticipate that the new EBA stress test will result in 66 failures.

 The EFSF is expected to be leveraged to around EUR 900bln and latest reports indicate that EU officials are debating whether to create a special purpose vehicle via the IMF, which would allow the fund to buy or insure various government bonds. Another option under the consideration would see the EFSF lend to a distressed state the money to buy EFSF bonds, which would be used to collateralize the certificates in the event of a default. Either way, it is widely expected that the bailout fund will takeover ECB’s role of bond buying.      

 There is a general agreement among analysts that in order to cater for Italy which risks being locked out of borrowing markets, the EFSF will have to be expanded far beyond the currently proposed levels. The caveat there is that an expansion or leveraging of the EFSF may hurt French bonds and in turn could lead to a sovereign rating downgrade. As such, it remains to be seen whether the much anticipated meeting among the EU leaders will deliver on the promises or result in an anticlimax and the inevitable realisation that was preached all along that Greece is insolvent.

 

 

 

 

Germans, 503-89 votes approving the EFSF changes  - which inst completed yet.

Wow this was the second comment on the article: "If this includes the internet... Then the gamers of America will be PISSED  The new Call of Duty comes out on the 8th. If the government shuts down the internet there will be hundreds of thousand internet gamers severely annoyed."

 

Too funny! LOL 
 

Possible terrorist attack on 11/9 based on silly facebook postings? I seriously doubt terrorists are spending their time on facebook trying making serious threats. BTW, whatever happened to that Anonymous group that was going to erase the NYSE from the internet (what does that mean?)? What a fluke! I think we rallied that day

 

Well it seems the Germans have now helped ensure that default concerns are now owned by 2012 not 2011. I need a risk-on risk-off lightswitch in my house, it would be fun.

Well that is funny but dumb. Gamers would be the least of it. Maybe some day they will shut off the internet through the famous Kill Switch, but that would not be for this purpose, IMO that would be when the Dark Pool Crash happened. Imagine if guys in the pit calling out bids and offers were the only thing moving the market, the algos would perhaps not even be involved. They could mark the Dow down to 1K in an hour, then buy everything, mark it up halfway, make 500% and impoverish half of America.

not really... doesnt delay anything its just a vote for expansion. vague and general.

they can easily mark to market the debt this year..jmo

 

 

 

They went after the NYSE website. No big effect.

 

Now they're going after kiddie pron.
 

 

Dollar working down into the candle from September 8th, i.e. already took out Monday's lows.

But but but but we're supposed to be falling off a cliff today SJE.  How could this be? 

oh dont worry thats coming. All AH short coverings, ..id be surprised it it held any gains by EOD.

It will correct itself this week i think by friday.

The cliff will be next week, this week we rally, didnt you get the memo?

This is all AH short covering?  They short covered their way back to square one from yesterday?

I think they are just using the same memo over and over and over again
 

 

wow... sharp peak followed by selling... that's unthinkable!

 

And don't forget the coversheet on your TPS reports... 

 

(sorry for the distraction - I couldn't resist)

there was none even when the futs market closed.
 

 

oh yeah, you get some street cred for an Office Space reference!

 

Looking at SPY calls today, just need an entry somewhere here...

damnit man ...couldn't chase FSLR after a 9% gap .... thing is in beast mode.

Hold your horses folks, Euro just pulled the engine.  

lots of news headlines hitting the wires this morning... looks like we're in for a crazy @$$ day.