Short DAX at 7740

Euro Nation Default A Matter Of Time Claims Ex-Bundesbank President

Posted by Tyler Durden at 11:09 AM
Karl Otto Poehl is pouring some major cold water on all the optimistic talking heads saying eurozone defaults can be avoided. According to the former Bundesbank president, a default of smaller member of the euro region is only a matter of time.


"The first will certainly be a small country, so that can be managed by the bigger countries or the IMF,” he said in an interview with Sky News. “I think there are countries in Europe which are considering the possibility to leave the eurozone. But this is practically not possible. It would be very expensive."
Poehl suggests that Germany or the IMF will be forced to deal with the default... However he does not account for just how much cash it would take to pick up the pieces after the intertwined European dominoes start faltering left and right. Last time we checked, Germany couldn't issue bonds to save itself, let alone the entire Eastern European region which is on the precipice every single day.

Curious is the comment about countries leaving the eurozone "In the case that a country would leave the eurozone, the foreign exchange rate would go down significantly -- 50 or 60percent,” he said. “Interest rates would go sky high as the markets would lose confidence in the system” and “in the countries that can’t maintain their membership."

And while practically speaking Germany bailing anyone out is a pipe dream, even the theoretical proposition is not assured. Former ECB Chief Economist Otmar Issing told Frankfurt Allgemeine Zeitunglast week that saving a profligate member would be“catastrophic” and undermine the monetary union framework. Current ECB Executive Board member Juergen Stark calls the no-bailout rule an “important pillar on which the European Union was founded.”

http://zerohedge.blogspot.com/2009/02/euro-nation-default-matter-of-time.html
 
Quote from gangof4:

this seems waaaaaaayyyyyyy too giddy leading up Geitner's little show and tell. what has been leaked doesn't seem like salvation. i'd be usrprised if we're up here when Timmy opens his yap.*

* i also thought the ES would pull back about 6 points ago (and have the scars to prove it). so, grain of salt...
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I cannot imagine Treasury moving on with such an important plan without involving the big marketplayers upfront and asking for their "permission"...
 
Quote from ASusilovic:

I cannot imagine Treasury moving on with such an important plan without involving the big marketplayers upfront and asking for their "permission"...
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i'm flat now, but if we're here or higher when he starts speaking, i'll prolly go short just because the sound of his voice should be good for 5 or 6 ES pints!
 
AA Alcoa Inc 7.38 +0.84 +12.84% 3/23/2009 4:00:00 PM
AXP American Express Company 14.56 +2.30 +18.76% 3/23/2009 4:00:00 PM
BA Boeing Co. 35.50 +2.95 +9.06% 3/23/2009 4:00:00 PM
BAC Bank of America Corporation 7.87 +1.68 +27.14% 3/23/2009 4:00:00 PM
C Citigroup, Inc. 3.13 +0.51 +19.47% 3/23/2009 4:01:00 PM
CAT Caterpillar Inc. 29.60 +2.53 +9.35% 3/23/2009 4:00:00 PM
CVX Chevron Corp 69.01 +4.30 +6.65% 3/23/2009 4:00:00 PM
DD E.I. du Pont de Nemours and Company 22.33 +1.67 +8.08% 3/23/2009 4:01:00 PM
DIS Walt Disney Company (The) (Holding Company) 18.92 +1.47 +8.42% 3/23/2009 4:00:00 PM
GE General Electric Company 10.43 +0.89 +9.33% 3/23/2009 4:01:00 PM
GM General Motors Corporation 3.38 +0.20 +6.29% 3/23/2009 4:00:00 PM
HD The Home Depot, Inc. 23.25 +1.09 +4.92% 3/23/2009 4:01:00 PM
HPQ Hewlett-Packard Co. 31.19 +2.34 +8.11% 3/23/2009 4:00:00 PM
IBM International Business Machines 98.71 +6.20 +6.70% 3/23/2009 4:00:00 PM
INTC Intel Corporation 15.52 +0.87 +5.94% 3/23/2009 4:00:00 PM
JNJ Johnson & Johnson 53.23 +1.56 +3.02% 3/23/2009 4:00:00 PM
JPM JP Morgan & Chase & Co 28.86 +5.71 +24.67% 3/23/2009 4:00:00 PM
KFT Kraft Foods Inc. 23.12 +1.27 +5.74% 3/23/2009 4:00:00 PM
KO The Coca-Cola Company 44.10 +1.46 +3.42% 3/23/2009 4:00:00 PM
MCD McDonald's Corporation 55.16 +1.96 +3.68% 3/23/2009 4:00:00 PM
MMM 3m Co 49.34 +3.41 +7.42% 3/23/2009 3:59:00 PM
MRK Merck & Co., Inc. 27.98 +1.26 +4.72% 3/23/2009 4:01:00 PM
MSFT Microsoft Corporation 18.33 +1.27 +7.44% 3/23/2009 4:00:00 PM
PFE Pfizer Inc 14.01 +0.38 +2.79% 3/23/2009 4:00:00 PM
PG The Procter & Gamble Company 47.74 +2.15 +4.72% 3/23/2009 4:01:00 PM
T AT&T Inc. 26.92 +1.59 +6.28% 3/23/2009 4:00:00 PM
UTX United Technologies Corporation 43.51 +2.98 +7.35% 3/23/2009 4:00:00 PM
VZ Verizon Communications 31.07 +1.46 +4.93% 3/23/2009 4:01:00 PM
WMT Wal-Mart Stores, Inc. 51.48 +1.89 +3.81% 3/23/2009 4:01:00 PM
XOM Exxon Mobil Corp 70.53 +4.44 +6.72% 3/23/2009 4:00:00 PM

Pfizer, worst performing stock. Bank of America, best performing.
 
Quote from ASusilovic:

Next big upside target 4278.00. :)
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Whether we will reach 4278.00 depends on willingness to believe "worst is over"...Maybe even 4320.00 in sight. I don´t know. But funny how picture changes from "deep, prolonged recession scenario"...

I am wondering what all these media pundits and bloggers will write. "Suckers rally", "bear market rally","unsustainable rally", or ? :confused:
 
GERMANY'S FALTERING BANK BAILOUT PROGRAM

"The Bottomless Pit"

By SPIEGEL Staff

The German government whipped its €480 billion bank bailout package through parliament in record time, but now the program has run into trouble. The banks are still fighting for survival, the money market isn't functioning properly, and taxpayers' money is being burned.

Who knows Claudia Hillenherms? Almost no one, and yet, for some time now, she has been one of the most powerful women in Germany.

To reach Ms. Hillenherms, one has to pass through a thick, heavy steel door. The painters have left their paint buckets standing in the stairwell of the historic building that belongs to Germany's central bank, the Bundesbank. Everything there smells new and seems temporary.

http://www.spiegel.de/international/business/0,1518,598207,00.html

Seems, kind of "national sport" to burn taxpayers money...
 
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