European leaders persuaded bondholders to take 50 percent losses on Greek debt and boosted the firepower of the rescue fund to 1 trillion euros ($1.4 trillion), responding to global pressure to step up the fight against the financial crisis. Ten hours of brinkmanship at the second crisis summit in four days delivered a plan that the euro areaâs stewards said points the way out of the debt quagmire, even if key details are lacking. Last-ditch talks with bank representatives led to the debt-relief accord, in an effort to quarantine Greece and prevent speculation against Italy and France from ravaging the euro zone and wreaking global economic havoc. âThe worldâs attention was on these talks,â German Chancellor Angela Merkel told reporters in Brussels at about 4:15 a.m. today. âWe Europeans showed tonight that we reached the right conclusions.â Measures include recapitalization of European banks, a potentially bigger role for the International Monetary Fund, a commitment from Italy to do more to reduce its debt and a signal from leaders that the European Central Bank will maintain bond purchases in the secondary market. The euro rose and stocks advanced in Asian trading, with the currency advancing 0.6 percent to $1.3989 as of 2:57 p.m. in Tokyo. The MSCI Asia Pacific Index of shares gained 2.6 percent, and futures contracts on the U.S. Standard & Poorâs 500 Index increased 1.5 percent. http://www.bloomberg.com/news/2011-...tedown-1-4-trillion-in-debt-crisis-fight.html
At 08:27 London time: EUR/USD 1.40 GBP/USD 1.60 FTSE +1.82 CAC +3.44 We are witnessing a rally after a non-crisis
I was trying being sarcastic. Most traders are expecting a real market collapse and a Euro fall since some time and this is probably why everything is going the other way around in the short term. Or else, they really made it to socialise losses and privatise profits for the next decade.
That's OK... so long as there is no real pain now. That will be good until they burn through the EFSF... then they/we go through this again. After all, no real cuts is excessive spending being considered.
We Europeans my a$$, Germany and France screwd the rest of Europe yet again. German and french banks are the most leveraged and with toxic assets, but according to the german-french plan, those in most need of recapitalization are spanish, italian, portuguese, and so on, because they now have to mark-to-market goverment bonds at September 30 Europe does not exist.
When you screw your creditors doesn't your cost of borrowing spike and future borrowing difficult? That's the way the credit system I know works.. Banks are up, Euro up, Stocks are up... no downside??
!306 London time FTSE +2.8 CAC +5.6 EUR/USD 1.4031 GBP/USD 1.6018 Deutche Bank +14% Barclays +15% RBS +15% This is a global, full blown, everybody-knows, unprecedented scam.