DOW futures up almost 200 as I write this. Very simply put: MARKETS ALL BUT IMPOSSIBLE BECA– USE OF THIS CONSTANT MANIPULATION AND INTERFERENCE. Yesterday, they were crumbling…after a late reversal…they pop up almost 2% today. My advice…wait this thing out. I certainly would do know buying on this gap. Technically, disregarding all news, support held yesterday and today, market has a chance to show something. The worst areas will gap up best as they get most of the juice from the news. So…oil,,commodities of all kinds and of course, financials will have a good bid as more and more bailouts continue. Keep in mind, this is end of quarter today…hmmmm!
The following is the news…really nothing different…just more loans to help out with outstanding loans and help for banks that own the crappy loans. One big vicious cycle. NKE and RIMM wacked this morning. I think RIMM is eventually a zero.
THE NEWS: Notice bad loans come off balance sheets…too funny!
Under the deal, Spanish banks will be recapitalised directly by allowing a €100 billion EU bailout to transferred off Spain’s balance sheet after the European Central Bank takes over as the single currency’s banking supervisor at the end of the year.
The decision, taken by a meeting of eurozone leaders in the early hours of Friday morning, will be based on a move to put the ECB at the centre of a “effective single supervisory mechanism” for banks after an EU summit in December.
“We affirm that it is imperative to break the vicious circle between banks and sovereigns,” said a summit statement.
A promise was also made to “examine the situation of the Irish financial sector” offering possible relief to Ireland by relieving the government balance sheet debt burden.
The Spanish bank bailout, to be agreed on 9 July, will initially use the euro’s European Financial Stability Facility (EFSF) before it is transferred into a new permanent fund later this year.
When the transfer takes place to the European Stability Mechanism the new loans will not be given seniority, giving extra security to Spain’s creditors.
After the ECB takes over eurozone banking supervision next year then the Spanish bailout will “very rapidly taken off balance sheet” and directly loaned to banks reducing Spain’s debt burden and borrowing costs.
Herman Van Rompuy, the president of the European Council of EU leaders, hailed the deal as an important step “to reassure markets and to get again some stability around the sovereign bonds of our member states.”
But, he warned, the new aid measures would be reserved for “countries that behave themselves” by abiding by the EU’s fiscal rules and austerity measures.