Uncle Sam To The Rescue After All: U.S. (Pardon IMF) to bailout All of Italy?
source: http://www.zerohedge.com/news/uncle-sam-rescue-after-all-latest-rumor-sees-%E2%82%AC600-bill...
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- Dagum
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What do you do when you need political cover to use the 99%'s money to bailout your banking brethren across the Atlantic? Call up the U.S. taxpayer funded and Washington based IMF.
The European desperation is palpable ahead of the EURUSD open in a few hours, which has to deal with the aftermath of the Friday afternoon downgrade of Belgium, the junking of Portugal and Hungary, and the prospect of an imminent downgrade of AAA-stalwarts Austria and France. So what does Europe do instead of actually proposing the inevitable debt repudiation that is the only and final outcome? Why more rumors of course. To wit: last night saw the preannouncement of Welt am Sonntag indicating that in order to bypass the lengthy process of treaty changes, Europe would instead proceed with bilateral agreements that would somehow enforce fiscal stability and convince the market that European states would follow the German leader.
Well since that is sure to have absolutely no impact, overnight Italian La Stampa is out with a fresh new rumor which cites "IMF sources" according to which the US-headquartered and funded organization would provide a €600 billion loan to Italy at 4-5%. In other words, Uncle Sam, in his role as primary funding agent of the IMF would lose massive amount of money on the "market to fair value" arbitrage, only to bail out the latest European domino. As a reminder, the whole "under market rates" loan from the IMF was implemented in Greece and worked out just swell: at last check the 1 Year Greek bond was trading with a yield of over 300%. ...
continued at:
http://www.zerohedge.com/news/uncle-sam-rescue-after-all-latest-rumor-sees-%E2%8...
The European desperation is palpable ahead of the EURUSD open in a few hours, which has to deal with the aftermath of the Friday afternoon downgrade of Belgium, the junking of Portugal and Hungary, and the prospect of an imminent downgrade of AAA-stalwarts Austria and France. So what does Europe do instead of actually proposing the inevitable debt repudiation that is the only and final outcome? Why more rumors of course. To wit: last night saw the preannouncement of Welt am Sonntag indicating that in order to bypass the lengthy process of treaty changes, Europe would instead proceed with bilateral agreements that would somehow enforce fiscal stability and convince the market that European states would follow the German leader.
Well since that is sure to have absolutely no impact, overnight Italian La Stampa is out with a fresh new rumor which cites "IMF sources" according to which the US-headquartered and funded organization would provide a €600 billion loan to Italy at 4-5%. In other words, Uncle Sam, in his role as primary funding agent of the IMF would lose massive amount of money on the "market to fair value" arbitrage, only to bail out the latest European domino. As a reminder, the whole "under market rates" loan from the IMF was implemented in Greece and worked out just swell: at last check the 1 Year Greek bond was trading with a yield of over 300%. ...
continued at:
http://www.zerohedge.com/news/uncle-sam-rescue-after-all-latest-rumor-sees-%E2%8...
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EdJoyProductions
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http://current.com/community/93557778_wah-i-miss-kb723.htm?xid=357&
Free KB! He will fix Greece's economy. Okay, maybe not, but free him anyway! - 6 months ago
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EdJoyProductions
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UhOhSpaghettiO
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Bail out KB!
- 6 months ago
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UhOhSpaghettiO
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Dagum
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The perpetual bailout machine continues. It's going global.
- 6 months ago
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Dagum
