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E F S F Bond Sale Flops

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Big Bazooka Develops Brewer's Droop

Bond Fatigue

Renewed market volatility forced the postponement of a €3bn bond sale by the region’s bail-out fund, even as Europe’s leaders sought to overcome fresh doubts about the future of the eurozone ahead of the G20 summit.

The European Financial Stability Facility on Wednesday was expected to issue 10-year bonds to fund Ireland’s bail-out, but the deal was halted at the last minute because many investors were unwilling to buy the debt following Greece’s surprise decision to hold a referendum on its second rescue.

One investor said: “This is a fund that is supposed to have the fire-power of €1 trillion, yet it can’t even raise €3bn. That is very worrying.”

It's all being blamed on Greece, but that's surely only part of it? China and Brazil haven't written any cheques yet and the details of the leveraging are still a bit fuzzy, to say the least. And then there's the problem of CDS that don't payout, and the guarantors . . . like France, which isn't out of the woods, and The Netherlands, which hasn't ratified anything . . . etc etc.

:unsure:

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Big Bazooka Develops Brewer's Droop

Bond Fatigue

It's all being blamed on Greece, but that's surely only part of it? China and Brazil haven't written any cheques yet and the details of the leveraging are still a bit fuzzy, to say the least. And then there's the problem of CDS that don't payout, and the guarantors . . . like France, which isn't out of the woods, and The Netherlands, which hasn't ratified anything . . . etc etc.

:unsure:

It will all be revealed as the biggest financial web of deceit in world history. The unravelling continues and is gathering pace, despite pauses invited by Euro leaders pretending they have funds to bail out with. There ARE NO SUCH FUNDS. It will all be some more phoney money, borrowed money, printed money, swishing around to MOVE DEBTS to new balance sheets. They want to cure a drunk with whisky. History will show it is certainly not all just Greek borrowing. It is western world wide and the culmination of the biggest greed feast ever.

Edited by plummet expert

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[it's all being blamed on Greece, but that's surely only part of it? China and Brazil haven't written any cheques yet and the details of the leveraging are still a bit fuzzy, to say the least. And then there's the problem of CDS that don't payout, and the guarantors . . . like France, which isn't out of the woods, and The Netherlands, which hasn't ratified anything . . . etc etc.

From: http://www.guardian.co.uk/world/2011/nov/01/greek-referendum-global-stockmarket-panic?newsfeed=true

"Analysts at Daiwa expressed concern that other countries might follow Papandreou's example and also opt for a referendum: "We fear that the ramifications of Papandreou's [referendum] pledge might eventually go wider than the outlook for Greece and its debt. "Who would bet that in due course other troubled euro area member state governments won't pursue a similar path if they too reach the limit of politically deliverable fiscal austerity? Papandreou's announcement risks being a pivotal [negative] event in the life of the single currency."

Mind you, is'nt Daiwa %^&&ed too?

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< snip > They want to cure a drunk with whisky. < snip >

Actually, it looks as though they're trying to cure a drunk by waving a bottle in front of his face and crooning "Look, whisky".

The bottle is probably empty but they're hoping his eyesight is too far gone to notice.

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Sarko must be sh1tting his pants :D

Well, if the EFSF can't raise a couple of bob for Ireland, then the great French Bank recapitalisation is definitely off the menu.

I think this is quite significant. Postponement through lack of interest is hardly an auspicious start for the whizz rescue plan.

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Well, if the EFSF can't raise a couple of bob for Ireland, then the great French Bank recapitalisation is definitely off the menu.

Is that the great recapitalisation that proposed to inject 2bn euros to strengthen BNP's 2 trillion euros of garbage filled balance sheet. Or in other words a 0.1% recap?

How was that significant?

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That's what central banks are for.

Except that, correct me if I'm wrong, the ECB didn't endorse the EFSF plan at the 'rescue summit' and the Germans aren't that happy with ECB alternative strategy either? (Hence recent resignations.)

This seems more like EU breakup than ever if EFSF fails. Calling Greece/Papandreou the villain won't help at all . . . it's a sideshow.

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They'll get the sale away if they hand over a chunk of IP to China.

Try persuading the Germans to not only foot the bill but shoot themselves in the foot too. We'd sell our granny children to have cheap debt servicing rather than face the fact that the way the economy has been only down into the ground.

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Id like to see the contract on these bonds, Invented late last week.

Probably hasnt got a lot of wood in the hull.

Edited by Bloo Loo

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As far as I can make out the ESFS is to raise money to allow govts to deficit spend, it was said on the TV Italy will need 300bn next year, which means the fund is going to be quickly exhausted and instead of just the Italian taxpayers on the hook, the whole of Europe will be on the hook. And the debt mountain just gets bigger with just a different label.

The whole thing is just nuts when you think about it.

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The whole thing is just nuts when you think about it.

That's the weird thing though. I come on here and it seems so clear and obvious that it's all about to come tumbling down, yet outside of this board (within the press, in business, around town etc.) the world seems to be fine and dandy. We're not the crazy ones are we?

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That's the weird thing though. I come on here and it seems so clear and obvious that it's all about to come tumbling down, yet outside of this board (within the press, in business, around town etc.) the world seems to be fine and dandy. We're not the crazy ones are we?

I think we are having different pills to everyone else.

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From: http://www.guardian.co.uk/world/2011/nov/01/greek-referendum-global-stockmarket-panic?newsfeed=true

"Analysts at Daiwa expressed concern that other countries might follow Papandreou's example and also opt for a referendum: "We fear that the ramifications of Papandreou's [referendum] pledge might eventually go wider than the outlook for Greece and its debt. "Who would bet that in due course other troubled euro area member state governments won't pursue a similar path if they too reach the limit of politically deliverable fiscal austerity? Papandreou's announcement risks being a pivotal [negative] event in the life of the single currency."

Mind you, is'nt Daiwa %^&&ed too?

My money is on Ireland to be the next to hold a referendum

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That's the weird thing though. I come on here and it seems so clear and obvious that it's all about to come tumbling down, yet outside of this board (within the press, in business, around town etc.) the world seems to be fine and dandy. We're not the crazy ones are we?

I think average Joe on the street haven't got a clue about the magnitude of the events that are slowly unraveling

Before I found this place I would not have had a clue ,as all I knew at that point in time was , house prices were not sustainable and the banks was going to loose a lot of money ,due to lending obscene amounts on high LTV mortgages

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EFSF doesn't have a bean . . .

Brazil rejects Europe debt purchase plan

(Reuters) - Brazil on Tuesday rejected the idea of buying European bonds to help ease the euro zone's debt crisis, casting doubt on a plan for major emerging market economies to offer fresh funds for the continent's rescue.

European leaders had floated the idea that developing nations including Brazil and China could provide funding to buy Euro zone bonds, which would help lower yields and ease pressure on countries such as Spain and Italy.

But Brazilian Finance Minister Guido Mantega echoed calls for Europe to solve its own burgeoning fiscal problems, saying Brazil had no intention of making such purchases.

"I believe that European countries do not need funds from Brazil to buy bonds. Brazil is not considering it," Mantega told reporters in Brasilia. "They have to find solutions to the European problems within Europe."

Should that be E FFS!

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Cheers, grammar is not a strong point of mine and I would be fecked without a spell checker

I'm not digging at grammar, I've having a dig that they won't just hold one referendum they'll have to hold multiple until they get the right answer. :)

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Nothing In The Tea Leaves Either . . .

China Wary of E FFS

China has taken the pragmatic view of the Euromess, and isn’t yet prepared to commit money to the European Financial Stability Fund. That may be the bullet for the long term bailout approach, unless the EU starts delivering results.

The idea was that China would invest in Eurobonds, by default financing the bailout of Greece and perhaps other Eurozone countries. The Chinese have made it clear they have serious reservations.

The BBC reports:

….It was thought the Chinese authorities may agree to help the troubled economies, not least because the region is one the biggest market for Chinese exports and a crisis may dent demand for Chinese goods and hurt its export-dependent economy.

However, the decision by the Greece government to hold a referendum on the latest bailout package has seen the authorities take a cautious approach

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yet outside of this board (within the press, in business, around town etc.) the world seems to be fine and dandy. We're not the crazy ones are we?

My talking chicken says I'm alright, don't know about you though.

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  • 284 Brexit, House prices and Summer 2020

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      • down 5% +
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