Eurozone Problems Unresolved, Brussels meetings unproductive – 14 Updates

Eurozone is no closer to a real debt solution than they were before the Brussels Conferences, can kicked down the road, AGAIN, not much road left…

Nearly the entire month of October, stock markets around the world rose on rumors and the optimism of European leaders, culminating with announcements on Wednesday, October 26, of breakthrough agreements to resolve the Greece debt problem, recapitalize the banks, and stabilize the Eurozone.  The news propelled the US Dow Jones Industrial Average (DOW) 339 points on Thursday, resulting in a gain from the low point during the month to a rise of nearly 1800 points by market close on Thursday, October 27, more than a 17% gain within the month.

The celebration lasted about 24 hours before analysis of the various agreements began to be reported on, disclosing that workable solutions for the European Union (EU), the EU banks, the European Central Bank (ECB), the European Financial Stability Facility (EFSF), Greece, PIIGS, and the International Monetary Fund (IMF) had not been agreed on, and was actually still unresolved.

GeoffTalk.com has assembled various articles on the subject and appended them to this posting to provide our readers the opportunity to be better informed on the issues and vagaries of the aftermath of the comprehensive European Union meetings held October 22-26, 2011.

Geoff & John

Postscript: October 28, 2011 Mish’s Global Economic Trend Analysis: Fitch says 50% Haircuts would Constitute Default; No Official Ruling from ISDA Yet; Wrong Decision Could Kill CDS Market; How Will Setup be Resolved?: http://globaleconomicanalysis.blogspot.com/2011/10/fitch-says-50-haircuts-would-constitute.html

PS2: October 28, 2011 Be Honest – The European Debt Deal Was Really A Greek Debt Default: http://theeconomiccollapseblog.com/archives/be-honest-the-european-debt-deal-was-really-a-greek-debt-default

PS3: October 28, 2011 Hitches Signal Difficulties for the Euro Zone – NYTimes.com: http://www.nytimes.com/2011/10/29/business/global/italys-borrowing-costs-rise-amid-uncertainty-about-rescue.html?_r=1

PS4: October 28, 2011 Trichet Says “crisis Not Over” | Fox Business: http://www.foxbusiness.com/markets/2011/10/28/trichet-says-crisis-not-over/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Flatest+%28Internal+-+Latest+News+-+Text%29&utm_content=Google+Feedfetcher

PS5: October 28, 2011 Europe Seeks Chinese Investment in Euro Rescue – NYTimes.com: http://www.nytimes.com/2011/10/29/world/asia/europe-seeks-chinese-investment-in-euro-rescue.html?partner=rss&emc=rss&src=igw

PS6: October 28, 2011 Greece Bailout: Beware the Evil Eye – US Business News – CNBC – CNBC: http://www.cnbc.com/id/45080257

PS7: October 28, 2011 A Brief Guide To The Euro Crisis | ZeroHedge: http://www.zerohedge.com/contributed/brief-guide-euro-crisis

PS8: October 29, 2011 Mish’s Global Economic Trend Analysis: Spain’s Unemployment “Unexpectedly” Rises to 21.52%; Expect Market Focus to Shift from Greece to Portugal, Spain, Italy: http://globaleconomicanalysis.blogspot.com/2011/10/spains-unemployment-unexpectedly-rises.html

PS9: October 29, 2011 No Solution to The Eurozone Crisis: http://www.globalresearch.ca/index.php?context=va&aid=27359

PS10: October 29, 2011 Saving The Eurozone. Will it Work? http://www.globalresearch.ca/index.php?context=va&aid=27356

PS11: October 29, 2011 Things That Make You Go Hmmm…. Such As An Empty Box Filled With Promises Of Money, And Europe’s Soup Nazi | ZeroHedge: http://www.zerohedge.com/news/things-make-you-go-hmmm-such-empty-box-filled-promises-money-and-europes-soup-nazi

PS12: October 29, 2011 Why the latest eurozone bail-out is destined to fail within weeks – Telegraph: http://www.telegraph.co.uk/finance/comment/liamhalligan/8857518/Why-the-latest-eurozone-bail-out-is-destined-to-fail-within-weeks.html

PS13: October 31, 2011 Euro Zone: EU Debt Deal a ‘Construct of Madoffian Proportions’: Economist – CNBC: http://www.cnbc.com/id/45099883

PS14: October 31, 2011 Mish’s Global Economic Trend Analysis: Papandreou Calls for Voter Referendum on EU Debt Deal: http://globaleconomicanalysis.blogspot.com/2011/10/papandreou-calls-for-voter-referendum.html

References:

1) October 25, 2011 Greenspan: Why European Union Is Doomed to Fail – EU Business News – CNBC: http://www.cnbc.com/id/45033013

2) October 25, 2011 Europe Struggles for Crisis Remedy – Bloomberg: http://www.bloomberg.com/news/2011-10-25/europe-struggles-for-remedy-to-euro-zone-crisis-as-final-package-fizzles.html

3) October 25, 2011 Mish’s Global Economic Trend Analysis: Greece Pension Plans Insolvent; No Conceivable Way to Make Promises; Can Spain and Portugal be Far Behind?: http://globaleconomicanalysis.blogspot.com/2011/10/greece-pension-plans-insolvent-no.html

4) October 26, 2011 BBC News – Euro crisis: EU leaders to finalise debt-tackling plan: http://www.bbc.co.uk/news/world-europe-15449149

5) October 26, 2011 Euro Zone: Euro Investment Vehicle ‘Giant Sub-Prime CDO’ – CNBC: http://www.cnbc.com/id/45042489

6) October 26, 2011 Mish’s Global Economic Trend Analysis: Talks Suspended in Deadlock; German Parliament Approves “Blank Check” on EFSF Leverage; Belgian PM Seeks Firepower Exceeding One Trillion Euros: http://globaleconomicanalysis.blogspot.com/2011/10/talks-suspended-in-deadlock-germany.html

7) October 26. 2011 Full Text: European Union Heads State Statement | Fox Business: http://www.foxbusiness.com/markets/2011/10/26/full-text-european-union-heads-state-statement/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Flatest+%28Internal+-+Latest+News+-+Text%29&utm_content=Google+Feedfetcher

8) October 26, 2011 Here Is How The 50% Greek Haircut Is Actually Just 28% | ZeroHedge: http://www.zerohedge.com/news/here-how-50-greek-haircut-actually-just-28

9) October 26, 2011 Barclays Explains Why A 50% Greek Haircut “Would Be Considered A Credit Event, Consequently Triggering CDS Contracts” | ZeroHedge: http://www.zerohedge.com/news/barclays-explains-why-50-greek-haircut-would-be-considered-credit-event-consequently-triggering

10) October 26, 2011 Mish’s Global Economic Trend Analysis: Grateful for Idiocy, a Pack of Lies, Financial Engineering, Legerdemain, and Trickery; Opposition Leader Rebukes Merkel’s Lies and Arrogance of Power: http://globaleconomicanalysis.blogspot.com/2011/10/grateful-for-idiocy-pack-of-lies.html

11) October 26, 2011 Calculated Risk: Euro Summit Statement: http://www.calculatedriskblog.com/2011/10/euro-summit-statement.html

12) October 26, 2011 Mish’s Global Economic Trend Analysis: No Agreement on “Any” Element of a Deal: http://globaleconomicanalysis.blogspot.com/2011/10/no-agreement-on-any-element-of-deal.html

13) October 27, 2011 In Rally Over Euro Deal, Relief Mixed With Wariness – NYTimes.com: http://www.nytimes.com/2011/10/28/business/global/in-rally-over-euro-deal-relief-mixed-with-wariness.html

14) October 27, 2011 China Lays Out Conditions Under Which It Will Bail Out Europe; Does Not Want To Be Seen As “Source Of Dumb Money” | ZeroHedge: http://www.zerohedge.com/news/china-lays-out-conditions-under-which-it-will-bail-out-europe-does-not-want-be-seen-source-dumb

15) October 27, 2011 Mish’s Global Economic Trend Analysis: Credit Default Swaps Useless as Hedge Against Default; CDS on Greece a Purposeful Sham; Derivatives King Always Wins: http://globaleconomicanalysis.blogspot.com/2011/10/credit-default-swaps-useless-as-hedge.html

16) October 27, 2011 charles hugh smith-EU Leaders Throw Europe a Plutonium Life Preserver: http://www.oftwominds.com/blogoct11/plutonium-life-preserver10-11.html

17) October 27, 2011 Euro Bailout Cracks Emerge; Greece “Just Says No” | ZeroHedge: http://www.zerohedge.com/news/euro-bailout-cracks-emerge-greece-just-says-no

18) October 27, 2011 Greek deal accomplishes nothing, systemic risk coming – Gains Pains & Capital – A financial investment newsletter published by Phoenix Capital Research: http://gainspainscapital.com/?p=1000

19) October 28, 2011 Europe Tries To Kick The Can Down The Road But It Will Only Lead To Financial Disaster: http://theeconomiccollapseblog.com/archives/europe-tries-to-kick-the-can-down-the-road-but-it-will-only-lead-to-financial-disaster

20) October 28, 2011 One Day After The Euphoria, Here Comes The Hangover | ZeroHedge: http://www.zerohedge.com/news/one-day-after-euphoria-here-comes-hangover

21) October 28, 2011 Europe Will Make Lehman Look Like a Joke | ZeroHedge: http://www.zerohedge.com/contributed/europe-will-make-lehman-look-joke

22) October 28, 2011 Europe will make Lehman look like a joke – Gains Pains & Capital – A financial investment newsletter published by Phoenix Capital Research: http://gainspainscapital.com/?p=1010

 

Plus, over 50 previous GeoffTalk.com postings since May 2011 have expanded on the subjects of Eurozone, Greece, Portugal, Ireland, Italy, Spain (PIIGS), Germany, France, United Kingdom (UK), European Union (EU), European Central Bank (ECB), International Monetary Fund (IMF), US Federal Reserve Bank (FED), Organization of Oil Exporting Countries (OPEC), BRICS (Brazil, Russia, India, China, South Africa), World Financial Contagion, Derivatives, Credit Default Swaps (CDS), Collateralized Debt Obligations (CDO), Mortgage Backed Securities (MBS), US Debt Ceiling, Quantitative Easing I, II, III (QE I, II, III), Platinum, Gold, Silver, Oil, Peak Oil, Rare Earth Minerals, Commodities.

 

 

This entry was posted in Debt, Economics, EU, Fragile Markets, Geoff Yuen, Government, Government Spending, Government Sponsored Enterprise, John McClelland, Monetary, Philosophy, Politics and tagged , , , , , , , . Bookmark the permalink.

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