jcsok wrote:This bear went back into hibernation, for the most part, at 1410. Intend to try to rebuild position around April 20. Bears have gotten very hungry, and have been hunted relentlessly by the Fed, But the Fed and Europe should be about out of ammo. Still minorly short ES, and 100% short 6E.
FRANKFURT, April 2 (Reuters) - European shares were flat on
Monday, giving up early gains due to renewed nervousness about
the euro zone after media reports said Germany's Bundesbank had
stopped accepting the bonds of Portugal and other peripheral
countries as collateral.
The Bundesbank denied the reports but they hit banking
shares and stocks in peripheral euro zone markets. The German
central bank said it continued to accept all euro zone sovereign
Bundesbank rejects Greek bonds
German central bank refuses debt from countries in bailout programs as collateral for liquidity
By Sotiris Nikas
Greek bonds are increasingly becoming worthless, which may well further delay Greece’s return to the markets, as Germany’s central bank is now refusing to accept the bonds of countries in bailout programs as collateral, according to a press report in Germany.
Up until this week Greek bonds had been used by banks to draw liquidity from eurozone central banks and the European Central Bank. However, the ECB announced on March 21 that it was giving eurozone member states’ national central banks the right to reject bonds of banks guaranteed by states that are in European Union and International Monetary Fund reform programs: Greece, Portugal and Ireland, for the time being.
In this context, the Bundesbank has become the first of the eurozone’s 17 central banks to refuse these countries’ bonds as collateral, according to a report in Friday’s Frankfurter Allgemeine Zeitung. This means that as of May, the German central bank will cease to lend to commercial banks that use Greek, Irish or Portuguese bonds as collateral.
Higgenbotham wrote:I hadn't known the Bundesbank issued a denial but that would be consistent with the preludes to past blowups if my memory is correct. My thinking today was that it will be "risk on" more or less until somebody says they're pulling out of the Eurozone because their collateral isn't being accepted, or something along those lines.
vincecate wrote:Higgenbotham wrote:I hadn't known the Bundesbank issued a denial but that would be consistent with the preludes to past blowups if my memory is correct. My thinking today was that it will be "risk on" more or less until somebody says they're pulling out of the Eurozone because their collateral isn't being accepted, or something along those lines.
Mish says you should never believe the rumor until it is officially denied. If it is true they deny it (politicians think that when things get serious they have to lie) but if it is not true they ignore it.
http://globaleconomicanalysis.blogspot. ... h-and.html
John wrote:But let's recall that European politicians have lied over and over again, and Eurogroup chairman Jean-Claude Juncker recently was quoted as saying, "When it becomes serious, you have to lie," as we reported two weeks ago. By their own admission, it's not possible to believe a word that European financial executives say. They will deny that anything is going to happen until it actually happens. And with a corruption scandal brewing in Spain, "it" might happen to Spain before too long.
John wrote:Blowback grows from EU's political farce this weekend
We've commented several times on the repeated denials by EU officials on Friday, and how every one of them turned out to be a flat lie. Mainstream analysts and journalists are finally beginning to recognize what we've been saying for years -- that in this generational Crisis era, lying and fraud are the norm, not the exception. Here's how EuroIntelligence describes the situation:
"Guy Schuller, spokesman for Jean-Claude Juncker, admitted yesterday to lying about the secret meeting of finance ministers on Friday. The Wall Street Journal Real Time Brussels (link) blog has got it all, including the above quote from Mr Schuller, who was contacted by various media groups to whom he denied that the meeting was taking place. "There was a very good reason to deny that the meeting was taking place," Mr Schuller told the WSJ. "It was self-preservation." Helpfully, the WSJ also dug up an older press conference of Mr Juncker, who said "When it becomes serious, you have to lie." In his column on Monday, Wolfgang Münchau also commented on Mr Schuller's lie, adding that he did not believe the pronouncement that the meeting did not discuss a Greek exit from the eurozone either. Furthermore, he no longer believed any statement by any EU officials in respect of this crisis. We are in the stage of the crisis where officials are lying all the time. Lucas Zeise, in his column in FT Deutschland, says the outbreak of lies is the best metric for the pending break-up of the eurozone. He recalls various currency crises from the 1970s and 1980s, in which officials also lied that nothing would happen, until it happened. Zeise says two necessary conditions to avoid a break-up are the acceptance of a transfer union, financed, for example, by a tax on exporters, and the tolerance of large wage increases in northern European countries."
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