A quick glance at today's ECB open market operations section indicates that even Trichet may be getting a little worried about liquidity gone wild in Europe. Of course, his US counterpart has no such concerns. Earlier today, the European Central Bank announced that it had drained a whopping €295 billion in an unscheduled, one-time liquidity-absorbring, fine-tuning operation.
The turf war to (not) bail out Greece is on. Even though nobody wants to do it, yesterday's announcement by the IMF that it is willing to lend the troubled country a hand (and a few billion drachmas) has put Jean-Claude Trichet on edge. And even assuming today's bond deal gets done without too many glitches, Greece has at best bought itself breathing room for a month or so.We expect the volume on bailout speculation to go down at best by a couple of notches
From the FT's German edition . The federal government is preparing an aid package for Greece. As the Financial Times Germany learned from Berlin's coalition parties, both bilateral aid as well as an internationally coordinated approach at EU level in the interview
Traders make $8 billion bet against euro ( FT , h/t Daedal) Greece says call for aid would send "worst signal" ( Bloomberg ) ECB says Trichet travel change due to logistics ( CNBC ) Portugal plans 10 year Euro-denominated benchmark bond issue ( MarketWatch ) Judge promises to rule on SEC, BofA settlement ( Yahoo , h/t Daedal) US Losing AAA is way to rein in Pelosi, Reid ( Bloomberg ) Death knell? UBS reports higher client outflows, return to profit ( UBS ) Overbought conditions: Junk Bonds show ebbing distress on record sales ( Bloomberg ) Republicans and the populist temptation ( WSJ ) Up in smoke: one third of gains since the start of 2009 ( Bespoke )
Traders make $8 billion bet against euro ( FT , h/t Daedal) Greece says call for aid would send "worst signal" ( Bloomberg ) ECB says Trichet travel change due to logistics ( CNBC ) Portugal plans 10 year Euro-denominated benchmark bond issue ( MarketWatch ) Judge promises to rule on SEC, BofA settlement ( Yahoo , h/t Daedal) US Losing AAA is way to rein in Pelosi, Reid ( Bloomberg ) Death knell?
One of the less-reported events this weekend was the not so secret central banker meeting that is taking place in Sidney Australia. Now that factual details are finally emerging it is appropriate to collect some information tidbits about this shindig which has some claiming is reminiscent of a modern day version of the Jekyll Island meeting.
Quotes from Germany's Finance Minister: G-7 To Discuss Greece, Portugal On Sidelines Crisis Not Yet Fully Over Market Moves Exaggerated But Must Be Taken Seriously Euro Is And Will Remain Stable Will Not Spare Greece From Efforts To Reduce Deficit Europe Isn't Only Place With Budget Problems EU Commission Will Enforce Tough Demands On Greece
Submitted by Nic Lenoir Of ICAP Most of the reversal late in the day was short covering, as no one wants to be short over the weekend in case some resolution comes out of Europe.
Not good for Europe: all the posturing about how Greece will never, ever be bailed out was just destroyed courtesy of a few words out of place by the IMF. IMF Managing Director John Lipsky just noted that the International Monetary Fund is ready to help Greece "in any way necessary." The quote comes from a Bloomberg TV interview conducted earlier.
Federal Reserve seeks to block release of U.S. bailout secrets ( Bloomberg ) Dubai's first foreclosure may open floodgates in worst market: Dubai’s housing rout sent prices down 52 percent in the past year, prompting some homeowners to abandon their cars and mortgage payments and flee the country. Not one received a foreclosure notice
Tuesday, March 9, 2010
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