Seeking Alpha

Stock futures and the euro rocket higher on a "breakthrough" in Brussels, where there is...

Stock futures and the euro rocket higher on a "breakthrough" in Brussels, where there is agreement, according to EC President Van Rompuy, on a tighter union (i.e., central fiscal authority), and on allowing banks to be recapitalized directly by the rescue funds. S&P 500 +1%, the euro +1.2% to $1.2589.
Comments (22)
  • Funny a few hours ago I wrote a blog post called
    "Now is not the Time to be Short"


    If your interested its technical analysis and some commentary
    28 Jun 2012, 11:31 PM Reply Like
  • Apparently the agreement does not come up for signing until 9 July 2012, which leaves plenty of time for it to be modified, or even unravel.
    28 Jun 2012, 11:35 PM Reply Like
  • Tommorrow on "As The World Turns", Samantha gives birth to her girlfriend's husband's son!
    28 Jun 2012, 11:48 PM Reply Like
  • happy friday world...........
    28 Jun 2012, 11:50 PM Reply Like
  • There IS NO fix. The Euro is the problem. The Euro creates a structural imbalance that MUST lead either to massive inflation or massive debt. How do you pay off the massive debt, when massive debt causes debt deflation and economic depression? Germany gets to pay everyone's debts. That's not a real solution, is it?


    Actually, debt is the problem, worldwide. But the debt combined with the Euro makes the EU unworkable. Print more money. That makes things worse -- but it's a way to stall for time. Moving financial armageddon down the road a few more weeks.


    Time to wake up. Debt IS the deal with the devil. And the devil is here demanding souls.
    28 Jun 2012, 11:54 PM Reply Like
  • Amen. There is money to be made in short term gyrations, but in the end they need to abandon their obsolete philosophies of living large on the backs of their children, or lack thereof, and thinking they're somehow enlightened.
    29 Jun 2012, 03:16 AM Reply Like
  • Everything finally fixed. Thanks Eurocrats for the even bigger super big breakthrough again
    28 Jun 2012, 11:56 PM Reply Like
  • Wow, some breakthrough .... so the EU is going to use the EFSF/ESM bailout fund, all of which is borrowed money and amounts to something like 500 billion euros to recapitalize EU banks and buy some Spanish, Italian and PIIGS bonds to try and get interest rates down.


    Well how much of the EFSF/ESM is already committed to Greece, Ireland, Portugal,etc. and now about 100 billion going to Spanish banks.


    And many more hundreds of billions in debt rollovers in 2012 just for Italy and Spain, not to mention new debt from budget deficits. The EFSF/ESM is nowhere near big enough to handle buying even most of the Spanish and Italian debt coming to market in 2012, much less more significant debt rollovers in 2013.


    Some breakthrough .... maybe if they increase the EFSF/ESM to something like 4-5 trillion euros, it might work. But a the level it is at, they will run our of bailout money in a matter of months.
    29 Jun 2012, 12:05 AM Reply Like
  • Any excuse will do. The big boy's need to window dress their books.
    Times to buy in the morning and sell in the afternoon, again, and again, and again. This is so much easier than researching companies.
    29 Jun 2012, 12:11 AM Reply Like
  • I'm just a swing trader with modest skills - but I'm glad I'm long. The shorts have to be sweating on the last day of the quarter. I'd love to sell a rip if there is one tomorrow and go flat for the holiday here in the U.S. We shall see...


    Happy 4th.
    29 Jun 2012, 12:12 AM Reply Like
  • Printed paper currency is made to be lost so what's the big deal. What it really comes down to is a deal between two or a deal between two trillion there are going to be losers and there are going to be gainer. What we are witnessing is the fight not to be on the losing side. It's just like the two party system here. All the eloquence of the "leaders" is either to make themselves look good or their opponent look bad . The latter seems to be the dominant lately (yeah I know they make themselves often look bad). Why shouldn't Germany pay. I remember when the euro (currency) first started it was the Germans who shuffled to put it together because they could not wait to have an economy (350 million customers strong) to compete with the United States (which essentially includes South, Central and North America (about 300 million strong). And it all culminated with Saddam Hussein about to trade oil in euros but the U.S.A military might had to put a stop to that quick. So, now we have the mighty Germans stubbornly trying to hold on tight to it's dream of world supremacy. Did they think it was going to be a different outcome then WW II? The euro is finished as a dominant currency it is all but torn to pieces only good as a FX trade again. Now on to the greenback's value[less] scheme. You see it's the $800 TRILLION family's plot to keep us all under as they gather yet more chips on their side.
    29 Jun 2012, 12:52 AM Reply Like
  • It's like Spain banks bailout. Even before you blink your eye the same news turns negative. Remember, a couple of weeks ago, Asia rallied assumed Spain banks were bailed out. And, the rest is history not so long ago.
    29 Jun 2012, 12:54 AM Reply Like
  • I predict the market's reaction will be muted. How many times have these people met and proposed a "solution" only to have it be another half measure that disappoints once the details are released. There will be many people sitting with finger hovered over the sell button tomorrow.
    29 Jun 2012, 01:06 AM Reply Like
  • You're right, SDNS. They could not end a summit that was supposed to 'fix' the EU problem without some announcement of agreement. Yesterday, the news was that Merkel had said "Nein, nein, nein" to all the proposals that Germany pay everyone's debts.


    Today, we get: "Oui, Oui, Oui" everyone is in agreement.


    The truth is, there is no agreement. Germany won't pay all the debts of the stragglers who love to and need to borrow to survive. Which illustrates the structual flaw of the EU/Euro. One currency works for one economy and one country, but not for 19 economies and 19 countries (19?). The Euro needs to be put to rest. That's the only solution.


    And that doesn't anwer all the questions. The world has never had such a grand debt catastrophe before -- the global crisis is all about the mountain of debt (mostly Private debt) that is clogging the arties of the global economy. This depression is just getting started -- now that all the central bank bullets have been used to try to protect the world's creditors from their own greedy lending and lack of concern over quality of lending.


    God is punishing the world for the sin of Greed. For every action there is an equal and opposite reaction. The Laws of Nature are the Thoughts of God.
    29 Jun 2012, 01:31 AM Reply Like
  • If Angela Merkel and the other European insiders are not seven figures rich from insider trading on these gyrations, they're even more stupid than the US Senators.
    29 Jun 2012, 03:21 AM Reply Like
  • Futures "ripping" to 1340! Bears are doomed! Risk on!!!!!!!!
    29 Jun 2012, 03:29 AM Reply Like
  • Oh brother, We are being punished by G-D......I think G-d has a much bigger love for all of his/her/it's children than going around and punishing everyone for being human.


    I respect your beliefs, but please keep it in check on an investment forum. There are many religion sites you can spread your news around on. Plus I am sure you can have some really heated debates, here, lets make money.
    29 Jun 2012, 06:34 AM Reply Like
  • RS: God doesn't like to be segregated on religious sites or in medieval pamphlets, or in ancient times in the Middle East. Are you suggesting God is only love? Even Jesus, the Apostle of Love, came to the world with a sword, to turn brother against brother, family against family.


    Read the Old Testament -- you will see again and again the 'angry' and 'jealous' nature of the Jewish God -- who is also the Father God of Judeo-Christians.


    The 'anger' of God is built into the system. What goes up with jubilation comes down with a vengeance. Economies, political systems, materialistic illusions also. What is inflated by human pride, is cruellty deflated and becomes human sorrow, pity, and ultimately piety -- when all the pride is knocked out of the elaborate, wealthy, technologically-advanced Masters of the Universe.
    29 Jun 2012, 10:29 AM Reply Like
  • sorry, but this is not the forum for your beliefs vs mine or anyone elses.


    I will stick to what I feel, you can stay with what you feel.
    29 Jun 2012, 02:58 PM Reply Like
  • When I saw the headline I thought maybe they had decided to gut the welfare state.


    Oh well, back to regular programming. Bailout, everything ok, need another bailout, everything ok, riot, no bailout, oops yes bailout, protests, new terms on bailout, audit finds bailout terms aren't being met, another "summit", another bailout, more riots, new elections, can't form a government, new summit scheduled.


    And then we'll be on to the following week.
    29 Jun 2012, 01:22 AM Reply Like
  • Don't you mean on to the following weak?
    29 Jun 2012, 03:32 AM Reply Like
  • Faded the opening rip - time for hot dogs and beer.


    Agree that they're just kicking the can down the road again. But they did kick it a little further this time. I'm going to spend my week off honing my short side skills as I think they are going to be valuable for a number of years. For now, probably more upside for a while.
    29 Jun 2012, 10:41 AM Reply Like
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