2 trillion euro saving deal on its way! :), page-45

always dangerous posting here but...

a couple of things I think are interesting re the Telegraph article, FT also reported a better deal in works on Friday, UK time. It's not as bullish (sensational?) as the Telegraph. I can't paste the article but key points are;

the eurozone was discussing a large deal. Olli Rehn says contemplating the possibility of leveraging the EFSF resources to have more firepower, in joint operation with the ECB. But changes would only be discussed once 17 eurozone parliaments had finished ratifying current EFSF changes over the next month.

http://www.ft.com/cms/s/0/79b3309c-e6e2-11e0-8c5e-00144feab49a.html#ixzz1Yx7YzeUG

where does the money come from - probably a massive simplification, but the extra EFSF money comes from leverage, right...

take E440b the EFSF has, put it up as collateral with the ECB and get a whole bunch more (and the ECB just creates it. Is that a big deal? I don't know, isn't that how fractional reserve banking works), EFSF offers it as recapitalisation for for banks who can't get money privately, and as buy support in the bond market so banks can get off positions.

where does it end? I guess it buys a hell of a lot of time, enough until a fiscal union can be passed [in the same FT article, German Finance Minister "we have to speed up fiscal union"] and prevents a banking system from collapsing. From then on, it's a work through, same as it has always been right?

whether or not this one is it, a solution will be reached. and, again probably a massive over simplification but the solution will probably be moving a large part of debt/loss to the various taxpayers and extending the duration so it's less visible and more easily managed. And I figure those decisions are made because, despite the emotion, it is much better for economies than a banking system collapse.

but does the deal turns us around, tomorrow. looking at sunday middle east trade it's doesn't look like the beginnings of +300 reversal in the Dow, not yet, regional index is -0.3%

http://www.bloomberg.com/news/2011-09-25/dubai-shares-fall-to-one-month-low-on-global-growth-concern-oil.html

but you've got to be a bull, the lower we go the more bullish you've got to get.

PS ? if you haven't seen it already, there's another good deal overview here

http://www.bloomberg.com/news/2011-09-23/europe-weighs-speedier-enactment-of-permanent-rescue-fund-to-stem-crisis.html