By Marius Zaharia and Matthias Blamont

LONDON/PARIS | Mon Dec 12, 2011 10:13am EST

(Reuters) - A European summit deal to strengthen budget discipline in the euro zone failed to restore financial market confidence on Monday, forcing the European Central Bank to step in again gingerly.

The euro fell, stocks slid and borrowing costs for Italy and Spain rose as investors weighed the outcome of last week's summit that split the European Union, with Britain blocking treaty change and forcing euro zone countries to negotiate a fiscal accord outside the Union.

Friday's initial market rally petered out in less than 24 trading hours due to legal uncertainty surrounding the new pact and the absence of an unlimited financial backstop for the single currency.

French President Nicolas Sarkozy said the legal basis of a new accord to enforce debt and deficit rules in the 17-nation euro area with quasi-automatic sanctions and intrusive powers to reject national budgets would be worked out before Christmas.

"In the next fortnight, we will put together the legal content of our agreement. The aim is to have a treaty by March," Sarkozy told newspaper Le Monde in an interview.

"You have to understand this is the birth of a different Europe -- the Europe of the euro zone, in which the watchwords will be the convergence of economies, budget rules and fiscal policy. A Europe where we are going to work together on reforms enabling all our countries to be more competitive without renouncing our social model," he said.

Traders said the ECB intervened to buy short-term Italian debt after yields on Italian and Spanish debt spiked. But ECB sources told Reuters last week that purchases would remain limited with a maximum ceiling of 20 billion euros a week.

There is no prospect of a "big bazooka" to shock the markets.

Despite the central bank dabbling, Italian 5-year bond yields shot up above 7 percent, widely seen as a danger level while 10-year yields spiked above 6.8 percent and Spanish 10-year yields topped 6 percent.

Translation,

The entire last year of so called summits were nothing but a charade.

Greece has not cut jack shit, nor has Italy and france is heading in the same direction fast. See Italy's announcement last week that it has reduced its budget deficit by cutting pension payments starting two years from now.

All of them think that they can wait this out by printing money and taking resources from profitable countries and shifting it to coutries who specialize in handing out goodies to loooosers.

This worked in the soviet union for awhile but the system eventually fell apart.

VAVD wrote:

European civilization teeters on the edge of collapse.

Her bastard United Slaves child is in an even worse condition, in fact in full collapse mode. So we'll just call it an unfortunate mishap soon, and nuke the shit out of it. This will provide us a bit of fresh air and ressources, and we will then rebuild the grand, beauty and truth worshipping, catholic Europe, that "protestant", usefulness and ugliness worshipping, pleibeian peasants have been trying to destroy.

Before Belgium goes on its grand crusade for lebensraum, don't you think you should let your first government in a year and a half find out where all the restrooms are in their new offices?

ArthurH wrote:

we will then rebuild the grand, beauty worshipping, catholic Europe

Just going to come right out and embrace child rape, huh?

Pippin has the hots for Justin Bieber. Is he Catholic too?

This summit solved NOTHING. The debt crisis is STILL a crisis
no matter what they talk about. This is ALL france is good for
talk with NO ... NONE....NIL...ZIP action. NOTHING.

On the weekend, local talk radio stations here play a summary shortened version of shows they carry daily during weekdays. Tuned in yesterday (Sunday) and heard an economist predict that by next week (he was being recorded last Monday) that he expected the markets to reject the agreements, and expected stocks to start to crumble. So, thats playing out exactly as predicted. He also expected riots. Any riots yet?

Just the markets enjoying the moment to take some profits off the table and dump more Eurotrash bonds.

Problem remains of bank liquidity for the Wop, Spic and Frog banks - their collateral is suspect and they can't get dollars and the interbank markets are essentially locked up.

You would think even the dimmest in the markets would wake up to this charade - the half life now of one of these 'summits to end all summits' is tops 48 hours and the only reason it lasted this long was the weekend was inbetween.

Mondays a fucking disaster?

SHOCKER !!!!

I pulled three more big triggers last night
24 /48 hours bets
carpe noctem bitches!

Da bloomberg TV was a freaking Benny Hill marathon in zee wee hours and my Japanese girl was shot out of a cannon, moving so fast not only was she talking in Japanese and English she was texting in Japanese and engRish

which only comes out in characters

so .... they could also be curses to
who knows



Europe is zolid !

zee euro is zolid !

ZEE banks are zolid!

our euro leaders have saved us !

the European economy is the biggest most bestest most generous in da woild their is no growth conundrum rapidly materializing .


empty containers are not piling up in Europe and the U.S. and are heading back to china ready to be filled.


leprechauns control the gold markets and they look like da joos that dance around in alans head

sarkozy is not Angela's poodle

all iz vell

purple 39.... red 14 .... blue 76
hut
hut
hut
hike! ....
schmucks !

Dozens of banks across Europe have sold large quantities of insurance to other banks and investors that protects against the risk of ailing countries defaulting on their debts, the latest illustration of the extensive financial entanglements among the continent's banks and governments.

‘Death Spiral’
The size of potential losses at European banks has scared away short-term creditors, squeezing the region’s lenders. The European Central Bank has stepped in to replace funds being withdrawn, providing unlimited cash and lowering requirements on the quality of collateral it will accept.

“We’re in a death spiral,” said Andy Brough, a fund manager at Schroders Plc in London. “As the yields on the peripheral bonds increase, value of the bonds decreases and the amount of capital the bank has to raise increases.”

bu bu bu Da da da DEATH TO AMERICA !

New data released last week by European banking regulators suggest the risks of banks suffering losses tied to European government bonds could be higher and more widespread than previously realised.

The numbers show European banks have sold a total of €178bn worth of insurance policies, in the form of financial derivatives known as credit-default swaps, on bonds issued by the financially struggling Greek, Irish, Italian, Portuguese and Spanish governments

Foreign-exchange strategists are reducing their forecasts for the euro at the fastest pace this year as European Central Bank President Mario Draghi’s interest- rate cuts remove one of the currency’s pillars of support.

Cumulative outflows from the euro last week were twice the average in the same period last year, according to BNY Mellon, the world’s largest custodial bank, with more than $26 trillion in assets under administration. The firm doesn’t provide specific figures.

NOZZLE wrote:

All of them think that they can wait this out by printing money and taking resources from profitable countries and shifting it to coutries who specialize in handing out goodies to loooosers.

That is the foundation the US is built on. Don't be so hard on yourself.

bratwurst1978 wrote:

NOZZLE wrote:

All of them think that they can wait this out by printing money and taking resources from profitable countries and shifting it to coutries who specialize in handing out goodies to loooosers.

That is the foundation the US is built on. Don't be so hard on yourself.

Has Germany begun reprinting deutsche marks yet?

I feel like singing. Nazi marching song time:

Deutschland erwache aus deinem bösen Traum!
Gib fremden Juden in deinem Reich nicht Raum!
   Wir wollen kämpfen für dein Auferstehn
   Arisches Blut soll nicht untergehen!

bratwurst1978 wrote:


That is the foundation the US is built on. Don't be so hard on yourself.

More what it has ended up being since their oil peak and Reagan selling his arse to Saudis and Bankers to be honest, killing the United Slaves in the process.

They've blamed the markets. They've blamed the ratings agencies. One deranged German politician even said it was an American plot. Now they can blame the British for a few days.

I give them, at most, two more of their now-weekly summits and it'll be "JUDEN HERAUS!"

VAVD wrote:

One deranged German politician even said it was an American plot.

Hummm, which one is it ? Sounds like a nice guy !!

ArthurH wrote:

VAVD wrote:

One deranged German politician even said it was an American plot.

Hummm, which one is it ? Sounds like a nice guy !!

www.weeklystandard.com . . .

I will join the New Waffen SS you cunts

you just wait Germany will rise again

VAVD wrote:



www.weeklystandard.com . . .

Thanks for the info, will sure make this guy part of the team when we will need to "get the job done"

ArthurH may I call you Hans?

Swastika armband anyone?

I vant to invade Poland

Go to the east.

BrasherBoot wrote:

ArthurH may I call you Hans?

Swastika armband anyone?

I vant to invade Poland

Nah this is more of a serious thing, you didn't know ?