"...I doubt that anyone with an operating brain cell thinks the Eurozone leaders were willing to break the banks. And the overall scheme, in particular the €1 trillion+ rescue facility, as we have discussed in prior posts, is unworkable unless real money comes in. That either means the ECB, which the Germans are dead set against, the IMF, which will contribute but not on a scale to be sufficient, or China. Bloomberg said that Sarkozy was going to call Chineser president Hu Jintao to hit him up for funding tomorrow.
Even though this plan, such as it is, has lots of gaps, including an insufficiently large rescue facility (Sarkozy’s brother Olivier, head of the financial services group at Carlyle, in an FT op ed earlier this week, estimated the total required for banks alone to be $2 trillion, or €1.4 trillion, and that’s before you add in sovereign rescue requirements).
Mr. Market is nevertheless cheered by this sketchy, flawed outline. Most Asian markets were up over 2%, the Dax is over 3% higher, the FTSE has nearly 2% in gains, and the euro is close to 1.40. Perhaps the Eurocrats can keep these “get us through the next crunch” rescue packages going, but each deal seems to be harder to push over the line..."
at http://www.nakedcapitalism.com/2011/10/eurozone-leaders-agree-a-few-rescue-details-like-50-haircut-on-greek-bonds-plan-to-develop-a-plan-gooses-markets.html
Even though this plan, such as it is, has lots of gaps, including an insufficiently large rescue facility (Sarkozy’s brother Olivier, head of the financial services group at Carlyle, in an FT op ed earlier this week, estimated the total required for banks alone to be $2 trillion, or €1.4 trillion, and that’s before you add in sovereign rescue requirements).
Mr. Market is nevertheless cheered by this sketchy, flawed outline. Most Asian markets were up over 2%, the Dax is over 3% higher, the FTSE has nearly 2% in gains, and the euro is close to 1.40. Perhaps the Eurocrats can keep these “get us through the next crunch” rescue packages going, but each deal seems to be harder to push over the line..."
at http://www.nakedcapitalism.com/2011/10/eurozone-leaders-agree-a-few-rescue-details-like-50-haircut-on-greek-bonds-plan-to-develop-a-plan-gooses-markets.html
