Waiting For The Euro-Resolution

The Times reports unexpected (unexpected!) hold-ups in the grand resolution of the Euro-debacle:

European Finance Ministers Call Off Pre-Summit Meeting
By STEPHEN CASTLE

BRUSSELS — A meeting of European Union finance ministers that was to precede the second gathering in a week of European leaders was abruptly canceled on Tuesday, raising questions about prospects for a comprehensive deal to resolve Europe’s debt crisis.

In an emailed statement, Kacper Chmielewski, a spokesman for the Polish government, which holds the bloc’s rotating presidency, said the finance ministers’ meeting, set for Wednesday, had been called off.

The meeting of E.U. leaders will still take place, however, and “work on the comprehensive package of measures to curb the sovereign debt crisis” will continue there, the statement said.

“Further work at the level of ministers of finance will be conducted based on the outcome” of the summit meeting, it said. “The aim is to adopt all necessary elements and details concerning the package, as promptly as possible.”

The big picture people will continue to develop a mission statement and a statement of shared values; the detail guys (and gals!) will wait in suspense.

I would be surprised if anyone was surprised.  Market reaction is muted, and neither stocks nor the Euro are giving up much of their recent gains.  The S&P 500 is down about 14 and the Euro is off about 0.4%.

Comments

[Melinda Romanoff]

Means nothing.

[Ignatz]

Interesting article demonstrating Medicare is a bigger Ponzi scheme than SS.

[Rick Ballard]

Mel,

How can you say that? Bondo and spackle futures are through the roof and cheap paint is up 15%.

I suppose there's always a chance that the EUtopian Liars and Cheats Club will convince the Germans that French banks deserve to be saved but the probability of the occurrence is getting close to that of a lightning strike within Carlsbad Cavern.

This is almost as much fun as attending a performance of Waiting for Godot.

The Norwegian Blue isn't going to flap its wings.

[narciso]

That statement, says nothing in a very elegant
way.

[narciso]

Well that's only because it's pining, Rick,
otherwise it would be going 'voom' right out of the cage.

[Melinda Romanoff]

What I wrote, before rethinking it, was that the choice is default or devalue, and since the ECB can't print, that leaves...?

"Whomever leaves the EU first, wins."- My motto for the last two years.

[Melinda Romanoff]

Even better.

Your enjoyment of that play is tied directly to the bet you have covering your costs for the show that pays off on what scene Godot shows up in, in the Second Act.

[Jack is Back!]

A totally dysfunctional political system with a totally dysfunctional currency equals socialist utopia. But as long as people "ferme votre bouche" then everything will be "bien" and "in Ordnung".

[Danube of Thought]

Iggy, it's all gotta be re-done, and you can't get there from here.

[jimmyk]

Medicare is a bigger Ponzi scheme than SS.

I think it's less a Ponzi scheme than a massive redistribution of income (soon to become more massive if Obamacare is not repealed). The fact that the 2.9% tax applies to all labor income means that high income types are providing a huge subsidy for everyone else. Someone earning even $500,000/year is paying $14,500/year, potentially for decades. That will go higher next year under Obamacare.

[Melinda Romanoff]

Well put, jimmyk.

[Jack is Back!]

Boortz read a letter he received from Goldman Sachs today.

"Dear Investor:

Up until now, Goldman Sachs has been silent on the subject of the protest movement known as Occupy Wall Street. That does not mean, however, that it has not been very much on our minds. As thousands have gathered in Lower Manhattan, passionately expressing their deep discontent with the status quo, we have taken note of these protests. And we have asked ourselves this question:

How can we make money off them?

The answer is the newly launched Goldman Sachs Global Rage Fund, whose investment objective is to monetize the Occupy Wall Street protests as they spread around the world. At Goldman, we recognize that the capitalist system as we know it is circling the drain – but there’s plenty of money to be made on the way down.

The Rage Fund will seek out opportunities to invest in products that are poised to benefit from the spreading protests, from police batons and barricades to stun guns and forehead bandages. Furthermore, as clashes between police and protesters turn ever more violent, we are making significant bets on companies that manufacture replacements for broken windows and overturned cars, as well as the raw materials necessary for the construction and incineration of effigies.

It would be tempting, at a time like this, to say “Let them eat cake.” But at Goldman, we are actively seeking to corner the market in cake futures. We project that through our aggressive market manipulation, the price of a piece of cake will quadruple by the end of 2011.

Please contact your Goldman representative for a full prospectus. As the world descends into a Darwinian free-for-all, the Goldman Sachs Rage Fund is a great way to tell the protesters, “Occupy this.” We haven’t felt so good about something we’ve sold since our souls.

Sincerely,

Lloyd Blankfein

Chairman, Goldman Sachs"

[matt]

if you recall, 10 days ago, yesterday was "the day". A plan has been imminent every day for the past 2 weeks, except it's not.

My guess is that they will wait for an event and then turn the spigots wide open using every party trick they can find.

Am deep into Nouriel Roubini's "Crisis Economics" again this week after a hiatus. The discussion of the amazingly diverse and sometimes extralegal tools used by the Fed to ease the '07/'08 crisis is a fascinating read.

The problem is that those tools worked once but may not work again. The multi trillion dollar cash injections disappear into oblivion when the banks write down bad debt, and this time it is the sovereign debt itself that is in question.

The ECB and even Fed have been buying bad debt to shore up the foundations, but once the music stops everyone is going to have to count their pennies and my bet is that they all come up short.

The situation is hopeless, but not serious.

[narciso]

And that prospectus was approved by the firm of Milton Chadwick, Waters, in the Devil's
Advocates'

[Danube of Thought]

Unexpected:

Home prices in 20 U.S. cities dropped more than forecast in August, highlighting one of the obstacles facing the economic recovery in its third year. The S&P/Case-Shiller index of property values in 20 cities fell 3.8 percent from August 2010, the group said today in New York. The median forecast of 30 economists surveyed by Bloomberg News was for a 3.5 percent decline. Recovering the 31 percent plunge in home prices from their 2006 peak will probably be years in the making as foreclosures throw more properties on the market and sales flag.

[Melinda Romanoff]

Although I rightfully denigrated Business Insider a while ago, every now and then they put up a screamer.

And Jane, Dave, TC, and Rocco, this one's just for you: Elizabeth Warren: I created "Occupy Wall Street".

[glasater]

Berlusconi proposed raising the Italian retirement age to sixty-seven and his cabinet voted it down.

[centralcal]

glasater: I just logged in to Rush (ditto cam) and there you are right next to the sound control! Love your new FB profile picure!

[Rick Ballard]

"The situation is hopeless, but not serious."

How true. Look on the bright side though. Galloping demographic necrosis is going to bring Europe to the degree of stasis required by the progressive vision sooner than anyone had anticipated and China isn't far behind.

[Ignatz]

--I think it's less a Ponzi scheme than a massive redistribution of income (soon to become more massive if Obamacare is not repealed).--

In reading the article his point seemed to be that it is already after only 45 years in a more advanced state of decay than SS, has already expanded its tax base as far as it can income-wise and consequently the options for fixing it are considerably more problematic than SS's.
Mercifully, he didn't spend much time on the "what is the technical definition of a Ponzi scheme" rabbit trail.

[matt]

from this morning's Barclay's market report:

"Last weekend’s EU Summit produced very little in terms of specifics. All eyes will be on Wednesday’s summit results which should provide more details on a bank recapitalization plan and how/when/if the EFSF will be leveraged"

This is the EU summit that was cancelled this morning.

In the meantime, the global investment community is shunning the French banks.

[rse]

Now that GS letter is funny even if it is less parody than we wish.

Honestly the problem with the Euro and the EU is that it was supposed to be a stepping stone for more global aspirations. Just like Copenhagen and Cancun. That's why the science doesn't matter. It's an ideology where empirical evidence is only used when it reenforces. Never able to disprove.

Genuine restructuring or allowing exit is recognizing reality. That only happens when the successor vehicle for the ideology is in place. And Kim's temps have not been cooperating.

[Ignatz]

--All eyes will be on Wednesday’s summit results which should provide more details on a bank recapitalization plan...--

Ah, more free taxpayer money for the Euro banks.
Euros feel the transatlantic (or should that be interatlantic, per Barry?) might of OWS and tremble.

[Jim Miller]

According to Wikipedia, Berlusconi was "born 29 September 1936", so you can't accuse him of hypocrisy for wanting to raise the retirement age.

(You can accuse him of practically everything else, as far as personal scandals go.)

[Melinda Romanoff]

matt-

That was NOT what was cancelled this AM. An EcoFin meet was scrubbed, 27 Finance Ministers were supposed to meet before tomorrow's big show.

Where they will disclose that they have a plan.

To make a plan.

Again.

[MayBee]

I think one of the presidential helicopters just flew over my house.

Traffic in LA is a disaster right now.

[glasater]

Thanks, C-cal:) A customer shamed into changing it!

Right now I'm having very sympathetic thoughts for MayBee.

[Melinda Romanoff]

MayBee, do you have a laser pointer?

[Ignatz]

Excellent article at AmSpec about GDP and stimulus. Links to a compelling study stating that the stimulus cost the economy at least $470+ billion.
Also links to an idea to have a GPP replace GDP; Gross Private Product.
Finally somebody says what needs saying.

[MayBee]

Mel! Stooooop.

I'm not driving but my husband is caught in it. He just asked me to check the traffic websites to see if anything is open. The answer was no.

[maryrose]

Congrats JMH!
Kicking the Can down the road is so European don't you know. Everyone waiting for their bailout-where have I seen that disaster waiting to happen before? Oh yes, our own country circa 2008 and continuing on into the present.

[Jane]

Tell him to watch out for falling ice Maybee.

[matt]

yes, Mel. It was in preparation for the supposed top level meeting to take place a couple of days later. Unfortunately there is still no agreement.

The chatter seems to be that there is a bank bailout, but the size of the Greek haircut and whether it is a mullet or Prince Valiant is up in the air.

Then comes what to do about Italy, Spain, Ireland, Portugal, Belgium, France, etc has yet to be worked out.

And in the meantime, dollar denominated municipal and regional debt has yet to be discussed.

Oh, and what about the impasse in Italy? Will the Northern Alliance bolt? Will Lando Calrissian betray Han Solo? Will senator Palpatine betray the Republic? Stay tuned for "As the World Churns".

The theme song for this farce should be "Hello, I must be going"

[MayBee]

Ha! Husby is a Democrat so he'd probably be honored to have Obama's toilet ice land on his car.
We'd probably have to store it in the freezer or something.

[Jim Rhoads a/k/a vnjagvet]

Is that something like yellow snow, Jane?

[peter]

OT, but this is a great article about last night's world series game.

[Janet]

Bright side - You can yell, "Get that piece of crap out of here!" & have it be literally true!

[Jane]

For the life of me I cannot imagine anyone still being a democrat. I know several however and I just don't get it.

[GMAX]

All of you are going on and on as if the Won was a mere mortal who has to stop what he is doing when mother nature calls. A deity, even a minor one, does not attend to such frivolity.

[Old Lurker]

"We'd probably have to store it in the freezer or something."

Remind me to have my cocktails at your house without ice, MayBee.

My house is on the flight path from the WH to Camp David. We usually gets flights of three when the President is going or returning (no way to tell which one he is on). Then all weekend when he is at Camp David the Marine helicopters go over in singles carrying his visitors back and forth.

[MayBee]

Husband just got into work. Took him over two hours. They had shut down the 101, the 405, and the 10. At rush hour. Oh, how he takes this city for granted.

[centralcal]

MayBee - Mark Knoller on twitter is claiming they didn't shut down 101 and that Obama was also stuck in traffic.

Interesting, no?

[MayBee]

Well, something shut down the 101. There weren't any accidents.

[centralcal]

Mark Knoller
Presidential motorcade got stuck in traffic on 101 on the way to Tonight Show in Burbank. Highway wasn't shut down as is usual.

[MayBee]

That's really weird, ccal.
Everything surrounding the area where he was traveling was pretty much stopped. The whole traffic loop around Beverly Hills, Hollywood, and Burbank.

[centralcal]

MayBee, I believe you completely. I don't know and Knoller doesn't say where he was getting his information. More MFM misdirection? Wouldn't surprise me in the least.

[MayBee]

The administration probably doesn't want to get another popularity hit like Obama got last time he did this. Really, people hated him for that.

It's possible this time they came up with some hare-brained scheme to not shut down the highway but that was still supposed to provide security, that ended up making everything worse.

[Melinda Romanoff]

MayBee-

I won't stoop to you, but I will bow, at a time and place convenient for none of us.

Knoller was probably too busy snacking to notice the actual police cars blocking ramps. I bet on a press junket that boy's got more food in his carry on than a vending machine.

On the other hand, there might be a haircut at LAX or something.

[MayBee]

Mel stoooooooooop!

[Melinda Romanoff]

Noooooooo.

[Clarice]

The Wolverine's school is on the UCLA campus. I just bet her parents loved today's drive.

[Ignatz]

--The Wolverine's school is on the UCLA campus.--

I'd like to drop her through Barry's presidential sunroof.
They'd need a hose to clean up the mess.

[Clarice]

No kidding,Iggy!

Guys, did you see that Romney will not support asich in his fight with the unions? ABOand R I say

Romney refuses to back Kasich
against govt unions
Washington Examiner, by Conn Carroll Original Article
Posted By: PatrickHenry599- 10/25/2011 3:15:12 PM Post Reply
Campaigning in Ohio today, Massachusetts Gov. Mitt Romney stopped by a Republican Party phone-bank making calls in support of Gov. John Kasich's government union reform referendum, but refused to endorse the actual referendum. CNN's Peter Hamby called the scene an "incredible moment in politics." Kasich already signed his government union reforms into law in March of this year, not long after Wisconsin Gov. Scott Walker won his battle against government unions. But Democrats, with the help from the AFL-CIO, placed a referendum on next week's ballot Issue 2, that would repeal the new law. A vote for the referendum would keep the law, a vote against would repeal.

[Clarice]

Oh,,and this just in..Romney's been endorsed by Meghan McCain.

Stick a fork in him.

[peter]

Yeah, Romney, real show of guts.

[centralcal]

Good grief! He won't support Kasich?! He really, really does deserve the coveted Meghan McCain endorsement, then.

[Clarice]

Politico reports that in June the creep supported Kasuch.

He's done as far as I am concerned. Dead. Finished. Piece of burned toast.

[DebinNC]

That Romney supported the same Kasich policies in June makes me doubly reluctant to accept CNN's Pete Hamby's report of what Romney did or didn't do in Ohio today. Any verification elsewhere?

[centralcal]

Another debate coming - interesting moderator choice:

National Journal and CBS News will present the first Republican Presidential Primary debate on broadcast television on Saturday, November 12. Ron Fournier, editor-in-chief of National Journal, and David Rhodes, President, CBS News, today announced the debate, which will focus primarily on national security and will be held in conjunction with the South Carolina State Republican Party. Major Garrett, congressional correspondent for National Journal, and Scott Pelley, anchor and managing editor of the CBS Evening News with Scott Pelley, will moderate the debate, which will be hosted by Wofford College in Spartanburg, South Carolina.

It will be interesting to see if Major continues his low key and balanced approach now that he is no longer with FNC, and currently with the more liberal National Journal.

[DebinNC]

The Atlantic quotes CNN's Pete Hamby and conservative reaction to Hamby's account. If anyone sees a report from another source that was at that Ohio phoneback with Romney that backs up Hamby, I'd really like to see it.

[centralcal]

Politico and Weekly Standard all quote Hamby (CNN) too. Although there is brief mention of several questions from "reporters" on the subject - no other reporter seems to have written about it yet.

[Melinda Romanoff]

And it seems Romney's in New Hampshire today, and all press releases from the campaign are datelined "Boston" today.

Smells funny, that sole source stuff.

[DebinNC]

Here's lefty hero of the day Hamby's account. Even Hamby admits Romney alligned himself with Kasich's efforts to curb union rights. I think Hamby threw out some mischaracterized red meat, the lefties went wild with it, and some overeager conservative bloggers like Eric Erickson, long suffering from delusions of grandeur, fell for it without examination.

[DebinNC]

CNN's Pete Hamby, noting "a vague" Romney statement "was circulating the web", but not noting he was the single source of that statement and its context, Hamby's back for Round 2, and he's gleefully dragged Rick Perry into his docudrama.

[JM Hanes]

JiB:

"The answer is the newly launched Goldman Sachs Global Rage Fund, whose investment objective is to monetize the Occupy Wall Street protests as they spread around the world."

ROTFLMAO!!

Ditto for Mel's laser pointer! LOL!