EurAnalysis

Personally I wouldnt. not when theres going to be little volume from here on till the end of the week we all know whats been happening everytime theres been public holidays

It stand for "WAIT"

Good call Rod

More details. This program is not for the PIIGS. It is only for countries who are in good fiscal condition but are experiencing a credit crunch due to the crisis.

Do not close your short positions.

Bulls vs Bears
Yah gotta laugh. Doesn't Lagarde talk to Sarkozy.
Unbelievable!!~!!!!!

George W Bush....

PT someone was buying up GBP/JPY since the 9 am NY open.
I had been wondering why.

edit:If Italy and Spain get salvaged. Portugal already is making a good faith effort.
Ireland as well.

Greece gets a firewall around it.

I think it stands for WTF.

Just absolutely amazing stuff. So the IMF figures that they want to keep the "good countries" solvent during the EU crisis. Wow. The hour is later than I thought.

I didn't take that in to consideration, forgot it is Turkey day for the US coming up. Thanks!

As for what the W stands for, I think I'm with AaronWard with it standing for WTF!!

Thank You!

NEW YORK, November 22 (IFR) - Whilst there's not a single Euro Zone politician willing to admit that a break up of the Euro Zone is possible, CLS (Continuous Linked Settlement) the payments system that eradicated "Herstatt risk" is readying itself (theoretically) for the contingency plans required if one or more Euro Zone currencies goes back to its "legacy" currency. Herstatt risk is the name given to the risk of a bank settling only one side of an FX transaction; back in 1974 Bankhaus Herstatt received hundreds of millions of DEM in its accounts in Germany and never delivered the USD to its correspondent banks' accounts in New York. In the interim, prior to the settlement cut off at the USD clearing house, Bankhaus Herstatt went bankrupt causing losses at several of its correspondent banks and causing Franklin National bank into bankruptcy.
CLS evolved in the 90s as a unique settlement system eradicating that risk, it now channels an estimated 70% of FX spot transactions in the top 17 traded deliverable currencies. News of the system test for a legacy currency return was leaked to DJN London who quoted a Nomura report from last Friday that opined that a Euro breakup was a "very, real risk." Most interesting was a quote by an anonymous bank executive who noted that "About 90% of banks probably have legacy currencies in their systems. It's just a code after all" which detracts from the argument that it would be so expensive to reconvert bank payment systems to legacy currencies. As noted by another source in the same article, the hard part is re-programming the payment instructions but just like the legacy currencies, the old payment details are also probably sitting there waiting to be dusted off.
There's lots of talk of new ways to bolster the EFSF which we'll cover in detail later. In the interim EUR/USD trades 1.3522 paid (EUR=EBS via Reuters 3000Xtra) 30 pips off the opening mark. [email protected]

IMF Revamps Credit Lines to Lure Nations

The International Monetary Fund revamped its credit line program to encourage countries facing outside shocks to turn to the fund with few conditions attached as European leaders fail to end their debt turmoil.
The Washington-based IMF today said the new instrument, the Precautionary and Liquidity Line, can be tapped by countries with strong economies currently facing short-term liquidity needs. Countries with potential needs can also apply, as they did in the past under the Precautionary Credit Line that the new instrument replaces. read more...

foto,
I don't see how Italy and Spain can get salvaged. All of the EU is entering a mild to medium recession. How can they be salvaged without growth?
Italy has to refinance over €400 Billion early next year. Spain has 21% unemployment. Short of the ECB making large scale sovereign asset purchases, it's mind boggling how they can salvage them without a haircut of some sort or a big fat panda coming to the rescue.

The future remains unknown. But if contagion spreads the future is known.

This is to stop the contagion. This certainly lessens the scenario that the collapse is inevitable.

Will it work, it may. The markets have been under the impression that there was no white Knight to save the day.

The IMF just said there is. You can rest assured they have every CB on the globe involved in the backstop.

Don't get me wrong I still would not go long the Euro. But I will buy the GBP.
Got in a bit early this morning but hung on because of what GBP/JPY was doing.

Waiting For Long In Mid term - Expecting Tomorrow might break upside

No matter what, the governments will not allow a full blown financial collapse to occur under any circumstances.
Even if every bank must get nationalized, for the general population, life will go on.

Hi Foto,

This is also my assumption, but there seem to be quite a few that feel otherwise.

AW
Yes
Would add: to let the whole thing fall apart because of some bondholders who do not want to pay for a bad decision.
That would be criminal negligence.

You will always get your extremists.
Sure there may be a few bank runs. Some will fold and some will get nationalized. Most will survive though.
But what really matters is that the sun will still rise in the morning and there will still be food on the table and a roof over our heads.