Even Ben Bernanke Doesn't Believe In The European Bailout Bluff
Nah, I'm cool on sluttes for now, thanks...
In total shock and awe news, Europe's $1 trillion bailout bazooka didn't even last two days and is already getting dismissed by markets as the bluff that it really is. Oh please, EU, we knew you didn't have the monetary balls
Stocks fell, led by commodity producers and banks, and oil and copper slid on skepticism an almost $1 trillion European loan package will halt the region’s debt crisis. The pound gained as Conservative leader David Cameron was appointed prime minister. Gold rose to a record.
The Standard & Poor’s 500 Index lost 0.3 percent at 4 p.m. in New York following a 4.4 percent jump yesterday after the European plan was announced. The MSCI World Index dropped 0.7 percent. Oil fell on a stronger dollar, while copper slid on concern growth will slow in Europe and China. The pound rose 0.8 percent to near $1.50 and added 1.5 percent versus the euro on speculation Cameron will form a coalition with Liberal Democrats and take aggressive steps to cut the deficit. Ten-year gilt yields fell 4 basis points to 3.9 percent.
The European Union’s unprecedented bailout package is unlikely to be a “long-term solution” for the region, Marek Belka, the director of the International Monetary Fund’s European department, said in Brussels yesterday. Federal Reserve Chairman Ben S. Bernanke told U.S. senators in a closed-door session that the plan isn’t a cure-all, said Alabama Senator Richard Shelby, the senior Republican on the Banking Committee.
The Center Lane calls it EuroTARP and gives it a poor review if for no other reason than bad timing (Mother's Day and all, you Eurotrash fuckers made me work when I should have been napping), not to mention the fact that Ben Bernanke is trying hard to make sure his legacy of imploding the dollar is continued, euro be damned.
Oh and somehow in the middle of all this, broke ass Britain has been left out of any bailout fun as it refused to put its money where the EU's mouth is (shock, again) and therefore will not get any European money should it have its own debt crisis. Please, the UK being shit broke is old news, we've known that forever.
Oil didn't like it either but at $3.23 a gallon here in San Francisco, I have absolutely no idea what these people are talking about. Beats having to pay out more money to Muni for even crappier public transportation I guess.
When even Bernanke talks shit about the EU "rescue" package or bailout or whatever it is we have decided to call it, you know it's bad.
Federal Reserve Chairman Ben S. Bernanke told U.S. senators today that the euro region’s almost $1 trillion aid package to stem its debt crisis isn’t a cure- all, according to a participant.
“He said, ‘This is basically not a panacea,’” and that the measures are “temporary,” Alabama Senator Richard Shelby, the senior Republican on the Banking Committee, told reporters in Washington after a closed-door briefing Bernanke held with the panel. “There’s got to be fundamental underlying changes in their economies, not just Greece, but a lot of other countries,” Shelby cited Bernanke as saying.
You know it's bad when THAT bailout-addicted motherfucker starts canning on your monetary moves.