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More news from Brussels as EU's Olli Rehn says the European Central Bank will take the step of...

More news from Brussels as EU's Olli Rehn says the European Central Bank will take the step of buying government bonds, previously considered the "nuclear option" of the euro defense measures under consideration. Euro +0.5% against dollar. (MW; earlier) Updated 9:25 p.m.: WSJ reports the Fed has reopened a credit line to send dollars to Europe.
Comments (33)
  • dieuwer
    , contributor
    Comments (2571) | Send Message
     
    Germans must be happy with the prospect of Weimar-II.
    9 May 2010, 09:10 PM Reply Like
  • vcsdca
    , contributor
    Comments (8) | Send Message
     
    Please, DON'T start calling this "Marshall Plan II" - although it is significant, let's keep the rhetoric under control until we have more details.....
    9 May 2010, 09:29 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3243) | Send Message
     
    The controlled failure of the fiat system... a total reset of debt globally. They can eliminate debt... but can they continue to keep the economy going without creating more debt all over again?
    9 May 2010, 09:34 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Gold/Silver. Period.
    9 May 2010, 09:40 PM Reply Like
  • vcsdca
    , contributor
    Comments (8) | Send Message
     
    www.nypost.com/p/news/...
    9 May 2010, 09:53 PM Reply Like
  • goodie
    , contributor
    Comments (35) | Send Message
     
    why Europe needs the US dollars window?
    they could just print euros as much as they like.
    anyone?
    9 May 2010, 09:42 PM Reply Like
  • vcsdca
    , contributor
    Comments (8) | Send Message
     
    The terms are only for 7 and 84 days for our loans to Europe - only long enough to get the member nations to agree to the loans, should they need to happen...

     

    from Bloomberg:
    www.bloomberg.com/apps...
    9 May 2010, 09:51 PM Reply Like
  • nyuszika45
    , contributor
    Comments (633) | Send Message
     
    Germans may be appeased, but many of the Brits aren't too doggone happy at being pulled into a debt issue that doesn't (they thought) really touch them as they've wisely stayed out of the Euro.

     

    Patrick Minford (Margaret Thatcher's economist) argued against the Euro and certainly against the UK getting into it precisely for this reason - and because the unfunded liabilities soon to confront even Germany and France will move everything to the financial equivalent of the lowest common denominator effect.

     

    Now, with the IMF involved, North America gets to play in the mud with the PIIGS, too.

     

    Do I have it wrong or are we getting to the point where re-floating Western finances is almost like taking a guy that can't keep his trousers up to a sleazy strip joint? I was never any good at analogies, sorry.
    9 May 2010, 09:45 PM Reply Like
  • DigDeep
    , contributor
    Comments (2588) | Send Message
     
    analogy works for me
    9 May 2010, 09:55 PM Reply Like
  • BUZZER
    , contributor
    Comments (23066) | Send Message
     
    Speaking for the SEC."We like it".
    9 May 2010, 10:15 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3243) | Send Message
     
    Creating wealth for someone means taking wealth from another (99% of the people). Its a zero sum game, you just made 99% of people poorer relative to the government...
    9 May 2010, 09:53 PM Reply Like
  • vcsdca
    , contributor
    Comments (8) | Send Message
     
    Having a currency on a "standard" (i.e., gold...) makes it a zero-sum game.

     

    A fiat currency allows for growth of living standards, through the "creation: of money through lending - it only can work when banks are lending to the general public.

     

    It would be nice if that would happen again...
    9 May 2010, 09:56 PM Reply Like
  • DigDeep
    , contributor
    Comments (2588) | Send Message
     
    spread good and risk less than lending to over levered private entities so they buy t bills with free fed money - also the trading desks....
    higher cap requirements coming
    9 May 2010, 10:05 PM Reply Like
  • Vukephalos
    , contributor
    Comments (101) | Send Message
     
    Almost $1 trillion from the EU and IMF !

     

    The hum of printing presses in now heard all over the world.
    9 May 2010, 09:59 PM Reply Like
  • lordbadly
    , contributor
    Comments (51) | Send Message
     
    So much more reason for the red-blooded Greeks in the streets to continue the fight. Why indeed should they sacrifice anything if the EU ministers just invented a few hundred billion euros which they never had, and US is to support their currency by opening an exchange window? Why accept higher taxes and lower wages at the time of financial largesse? The Greek PM will now look like the ultimate fool for caving in and accepting the austerity demands.
    9 May 2010, 10:03 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Austerity is a condition of being saved - sort of like you only get to stay in the lifeboat if you are not 500 lbs.

     

    If you and 10 or 11 others were in a lifeboat and one of them was 500 lbs, what do you think would happen?

     

    E
    9 May 2010, 10:14 PM Reply Like
  • BUZZER
    , contributor
    Comments (23066) | Send Message
     
    Don't worry, the Greeks in the streets will demand their fair share, raises for all union employees showing up at work at some time during the day.
    9 May 2010, 10:19 PM Reply Like
  • tacosusio
    , contributor
    Comments (34) | Send Message
     
    Great analogy, except thus far, only the 500 lbs+ crowd have been allowed in the life boats. The rest of us get to swim with the sharks.
    9 May 2010, 10:35 PM Reply Like
  • Michael Clark
    , contributor
    Comments (9744) | Send Message
     
    Where are those 'banker bonus billions' now? Are they still is some individuals' pockets? The same individuals who created this crisis? Sacrifice starts at the top!
    10 May 2010, 01:49 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2899) | Send Message
     
    Now the floodgate is finally open. Every government in the world will have excuses to print money.
    9 May 2010, 10:04 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Right, rules and laws are only followed when convenient to do so. Once things get tough? Panic sets in and "whatever can be done" is done to appease the banking over-lords.
    9 May 2010, 10:09 PM Reply Like
  • BUZZER
    , contributor
    Comments (23066) | Send Message
     
    Better to have Europe use the "nuclear option" than Iran.
    9 May 2010, 10:20 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Engaging the "nuclear" option should tell you something.
    9 May 2010, 10:15 PM Reply Like
  • nyuszika45
    , contributor
    Comments (633) | Send Message
     
    I take it that means we should expect the markets to not like this? Logic tells me that the markets will open higher on the basis of this "sacrifice" (even though it is only we peons they are sacrificing) - but crystallising my Sword of Damocles metaphor, as this does, should drive the market lower.

     

    In short, that's why I stay out of that water. I'm not plugged into the Groupthink Lifesaver Company.
    9 May 2010, 10:33 PM Reply Like
  • vcsdca
    , contributor
    Comments (8) | Send Message
     
    Well, to be honest, being "plugged in" to the Groupthink Lifesaver Company means that you can feed on the info - which is why I am SO LONG the market going to into the open tomorrow.... lol
    9 May 2010, 10:38 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Agreed.

     

    The markets will like it until reality ensues.

     

    Futures up, gold down. Pump and dump until the next crisis.

     

    Lather, rinse, repeat.

     

    The end run is War and lots of it. I don't want this, it is why I am so angry about the bailouts and debt to solve a debt crisis.

     

    However; when you enable dysfunction, the dysfunctional behavior will continue until there is a physical resolution.
    9 May 2010, 10:39 PM Reply Like
  • nyuszika45
    , contributor
    Comments (633) | Send Message
     
    Ah! The solution to alcoholism is to let them manage liquor shops. Got it.
    9 May 2010, 10:47 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    No, take away the booze from the drunks and don't let Wall Street or Washington have any either (those that haven't been drunks for the last nine+ years too - I think there may be one or two).

     

    I think we are in agreement.
    10 May 2010, 03:44 AM Reply Like
  • nyuszika45
    , contributor
    Comments (633) | Send Message
     
    Yup.
    10 May 2010, 12:31 PM Reply Like
  • DigDeep
    , contributor
    Comments (2588) | Send Message
     
    www.cnbc.com/id/37054713
    excerpt
    U.S. president Barack Obama and German Chancellor Angela Merkel spoke by phone about the importance of EU members acting to build confidence in markets.

     

    this crap is continuous and the game blatantly exposed for what it is -smoke & mirrors trying to 'prop' our confidence by throwing more borrowed $ at more debt. Marc Faber is right.............
    9 May 2010, 10:47 PM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
     
    "U.S. president Barack Obama and German Chancellor Angela Merkel spoke by phone about the importance of EU members acting to build confidence in markets. "

     

    Apparently, the advice was something like this: "Print a trillion Euros....and tell the bondholders in Spain and Italy not to worry, because there are plenty more where those came from. "
    9 May 2010, 11:28 PM Reply Like
  • Michael Clark
    , contributor
    Comments (9744) | Send Message
     
    "Shock and awe" -- "nuclear option": those are military notions. Who is the enemy? Deflation. Let's not forget that the military result of the 'nuclear option' is total devastation of all the people and structures around the blast center.

     

    Is the Central Bank's buying of national government bonds really the nuclear option? Bernanke has been using the 'nuclear option' in America for many months now -- and it has done nothing here except postpone our face to face meeting with the devil. Is that all the 'nuclear option' is supposed to do: buy time?

     

    Not much of a 'nuclear option' if you ask me. Default works better, as it wipes away the debt, it doesn't just prolong the anguish and pain and doubt.
    10 May 2010, 03:31 AM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Under the three-year plan, the EU commission will make 60B euros available while countries from the other 16 euro nations promise backing for 440B euros. The IMF will pump at least half of the EU's total contribution of about 250B euro.

     

    Plus, the US Fed has reopened their "paper exchange" (see: ponzi) program to the EU.

     

    All-in-all, this is a massive bailout by the US taxpayers...the nail in the coffin for "O" and any other incumbent.
    10 May 2010, 07:33 AM Reply Like
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