Wakeup sheeple,,,,,,,LOL can only do so much,,,,,,,,
Below is Goldman's quick take on the E-Tarp MOU (completely detail-free, but who needs details when one has money-growing trees) announced late last night. In summary: "We recommend being long an equally-weighted basket of benchmark 5-year Spanish, Irish and Italian government bonds, currently yielding 5.9% on average, for a target of 4.5% and tight stop loss on a close at 6.5%." By now we hope it is clear that when Goldman's clients are buying a security, it means its prop desk is selling the same security to clients.
From Goldman:
Moving Towards ‘E-TARP’
Last night, European leaders agreed on widely expected measures to support growth, took steps towards a “banking union”…
…and defined the terms of Spanish financial assistance programs for banks.
Market expectations were very low heading into the Summit and active risk-taking is still low.
In light of the decisions reached overnight, we think that an extension of a bull steepening rally in peripheral bond markets can occur.
We recommend being long an equally-weighted basket of benchmark 5-year Spanish, Irish and Italian government bonds, currently yielding 5.9% on average, for a target of 4.5% and tight stop loss on a close at 6.5%.
1. A Move Towards ‘E-TARP’
Last night, European leaders agreed to: (i) allocate funds amounting to roughly 1% of Euro area GDP to stimulate growth; (ii) delegate supervisory and resolution authority of banks to a federal authority, involving the ECB; (iii) allow the ESM to inject capital directly into banks once the common resolution regime is in place; (iv) assist in recapitalizing the Spanish banks (for which up to EUR100bn had been already committed) through the EFSF, and subsequently through the ESM, on a pari passu basis with existing bondholders; and (v) re-examine the Irish financial aid package with respect to the support to banks presumably along similar lines as those taken for Spain.
The growth measures had been already widely expected, and most of the other initiatives will become operational only over the coming months. Disagreements on technical elements and delays can always emerge along the way. The ESM Treaty, for example, will have to be amended to allow for the possibility of recapitalizing banks directly. However, the political commitment to break the link between sovereign and bank balance sheets has been established and to our eyes this is very important. Funds to assist Spanish banks will be provided initially as a loan to the FROB. It is likely that banks that have received the funds will in the future be able to convert them into preferred stocks. On balance, the measures are supportive for Spain and Ireland, and in our view justify the rally in sovereign bonds and
http://www.zerohedge.com/news/europe-moves-e-tarp-goldman-selling-spanish-italian-and-irish-bonds-its-clients?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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