EurAnalysis

Just buying time

That's old news. Consider that idea scrapped for now, coz if the manure hits the fan, they'll have to use that money to bail out all the banks... not the governments.

Sorry guys..so damn sorry, just post the wrong link. Please forgive me. Bow bow !~~ Suppose to be this.

http://www.theaustralian.com.au/news...-1226368187971

Okay that is not a secret either.

It is an EU directive that has existed for quite a while now.
I believe it is called the depositor and investor compensation scheme which protects people like you and me from bank failures by allowing the state to seize the bank and pay out the depositors and investors (limited to certain amounts), or just take over the bank and keep operating it. I believe the EU directive numbers are 94/19 for depositors and 97/9 for investors.

From what I understand, Brussels is moving toward making this an EU wide scheme rather than letting the individual states manage their own schemes. The idea behind this is to remove the fear among depositors and investors in order to prevent bank runs.

ADD: I didn't read the article because it required registration of my email address and I do not want to be spam'd any more. So if the subject matter of the article is something other than what I mentioned above, please copy it and paste it here in this thread. Thanks.

SECRET plans are being drawn up in Brussels for a European rescue fund that could seize control of struggling banks across the Continent. The scheme, which would be funded by a levy on banks, will be presented by supporters as a "silver bullet" that could halt the steady escalation of the eurozone debt crisis.
It is being worked on in tandem with a proposal from Mario Monti, the Italian prime minister, for a Europe-wide guarantee on bank deposits.
The proposal would throw the financial muscle of Europe's stronger nations, and healthy financial institutions, behind weaker countries and lenders. Proponents, including top advisers to the European Commission, say the removal of the threat of bank collapses would restore market confidence in Italy and Spain.
It would also break the link that has seen bank problems harm national credit ratings - a serious issue in Spain, where the government was on Friday forced to plough 19 billion euros ($24.3 billion) into Bankia, the second-biggest bank by deposits

Crucially, the scheme's architects believe it would pass muster with German politicians, who have repeatedly said they will not jeopardise their nation's financial health to cure the ills of the eurozone.
Pressure to find a solution to the crisis mounted this weekend. In Greece, the prospect of a potential exit from the eurozone loomed large with polls predicting that the anti-austerity Syriza party is likely to win power. Charles Dallara, head of the Institute of International Finance, a bank trade body, claimed yesterday that a Greek exit would cost the global economy more than dollars $1.28 trillion.
In Cyprus, the governor of the central bank gave a strong indication that the country would be the next member of the eurozone to seek a bailout. Sources close to Brussels told The Sunday Times that the government had already made a request for aid, but it had been told to hang on.
Analysts at Citigroup have warned that bond investors could be poised to pull as much as 400 billion euros out of Italy and Spain "without further policy action".
The fear is that if Greece leaves the euro - or even if that risk becomes more realistic - depositors will withdraw money from banks in other struggling European countries. Foreign bondholders could decide the risk is too big to stomach and start to capitulate.
"Bondholders are sheep, not wolves," wrote Matt King at Citi. "Once the flock has been disturbed it can run quite quickly. And once it has changed its mind about a risk, it can be almost impossible to get it to turn back."
The bank scheme would see all eurozone lenders forced to pay an annual levy to a deposit guarantee scheme set up as a separate company. The company would be back-stopped with cash from the European Union, the European Central Bank or the new European Stability Mechanism.
That is the outline of the plan put forward by Monti. What policymakers and advisers to European Union officials are now demanding is that the fund also be given powers to take over failing lenders, mutualising the problems of struggling banks across all eurozone states.
"Once you have got to a point intellectually where you are comfortable with a central European guarantee on all bank deposits, it takes only another small step to accept that this fund should have broader powers," said one financier who is working on the plan. "This could be the firewall people have been demanding."
The Spanish government will now own a 90 per cent stake in Bankia. The cash injection was more than twice what the government warned investors to expect last week.
Bankia has indicated it will raise funds by selling shareholdings, including a 12 per cent stake in International Airlines Group, the parent company of British Airways, and a 5.3 per cent stake in Iberdrola, which owns Scottish Power.

Okay thanks. Yes, it is exactly the scheme I was talking about.

See these links --> http://eur-lex.europa.eu/LexUriServ/...94L0019:EN:NOT and http://eur-lex.europa.eu/LexUriServ/...97L0009:EN:NOT

Basically this is the uploading of administration and responsibility of a state level scheme to Brussels. Step one in the centralization of power over money.

I believe it will ease the fear over bank failures and probably prevent or at least minimize bank runs. However, it does nothing to solve the debt crisis and neither does it protect the shareholders of said banks. Remember that it is the shareholders dumping their bank stocks that is sending the markets into a tailspin. The depositors don't have much to do with what is happening.

Seems like, that aint gonna ease anything. Curiously waiting for the market to open and wondering whether a recovery will start towards 1.2900-1.3000

Very doubtful my friend. The most we can hope for without much better news is a small correction to 1.2620

Yea, think so too. But its seems like Greece its gonna stay for a while. The poll news going to support the market a little higher.

If the poll news does anything, it will slow down the fall, but as it is now it will not reverse it. However, if we see the PASOK party gaining support as well, then we probably get a reversal... or at least a temporary one until the bears jump in again over fears of a Spanish default.

US Bank Holiday Monday ... may favor EUR to up in 1.26 Zone.

Also CHF Bank Holiday ...

I'm buying till 1.2595

we might know later on monday close,the last 3 candle on daily looks very bearish and "Still" no sign yet for reversal

Yea, no sign of reversal or correction. Today going to show whether there will be any. Looking closely.

The Gap should retrace about 50% (at least) right???

Gaps are usually closed completely except during times of extreme directional bias.

ADD: Today we will most likely gap up a little bit because Friday closed pretty much at the bottom of a wave.

thanks and good lookin out pip-trapper. I've just seen a couple of times in the last 3 or 4 weeks where the gap failed to fill. So I've heard a virtual "lock" trade is to take 50% of gap as target. Don't know if my information is reliable or not. Anway you expect full closure today?

If we get a gap today, I would expect it to close without issue.

This is how it looks like right now

can't open those bad boys up....something wrong with attachments