The Credit Crisis Financial Stocks Short Journal

Its interesting that it appears the the EU bailout fund seems to be open to extending maturities into infinity(at least thats what Trichet was quoted saying), if thats the case then its could be that it's not really a loan but more like a fiscal transfer due the net present value of the loan declining in these extensions
 
Quote from Ghost of Cutten:

It's simply that sentiment got all one-way against the Euro. People were seriously talking in the summer about the Euro disappearing, not just having problems, but going back to Drachmas etc. There was a huge one-way speculative position short the euro, and there were just no more sellers left, then they got squeezed. Normally it would have just caused the market to go from 1.19 (the low) to maybe 1.30ish, but the QE news from Ben sent it up to the absurd price of 1.40+.

It's similar to all those bear market rallies in 2008 before the Lehman failure - each time the VIX got to 35-40 and fear was rampant, the market bounced 10% or so, and it was only once the whole system started wobbling that people stopped buying the dips and full-blown panic selling set in.
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Thanks for that insight GoC. After eyeballing the charts of $IBEX (Spain), $MIB (Italy) and $CAC (France), this makes a lot of sense. A series of lower highs and lower lows in these stockmarket indices since late 2009, despite the S&P 500 (and $DAX and $FTSE) going to new 52-week highs in November.
 
Quote from Daal:

Its interesting that it appears the the EU bailout fund seems to be open to extending maturities into infinity(at least thats what Trichet was quoted saying), if thats the case then its could be that it's not really a loan but more like a fiscal transfer due the net present value of the loan declining in these extensions
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Link?
 
Quote from ralph00:

Link?
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Actually there is no Trichet quote on that, I made a mistake, but I'd say this is a serious possibility now given that Ireland gotten more time and Greek has their extension. I can't possibly see them calling those loans anyway
 
I'm curious, is there a way to know what would have been the results of typing 'madoff ponzi' on goggle before he was found out?(essentially pre-late 2008 results)
 
Quote from ralph00:

I'm assuming everyone realizes that's a spoof, and a very funny (or sad) one.
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both funny and sad.

The last paragraph is interesting:

"Several people have asked for confirmation of those Trichet quotes. I guess I need to be even more outrageous. Those quotes of Trichet were a spoof."
 
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