Financial Alchemy: The Miracle of Finance (Zero Hedge and TF Market Advisors)

The Premise is that bankers will take the 440MM Euro EFSF and magically turn it into 2T Euros.  Easy Peasy, Right?  More leverage is the path forward, right?  The creation of highly leveraged exotic and special vehicles worked well over the last decade, right?  This time will truly be different.  Really, it will.

Leverage: Yesterday's Problems, Today's Solution

Submitted by Tyler Durden on 09/27/2011 09:19 -0400

Via Peter Tchir of TF Market Advisors

All the markets continue to bask in the glow of the new improved EFSF.  From a low of 1115, the S&P futures are now trading at 1175.  A pretty impressive 5% move.  Stocks in Europe are doing even better and credit is following along.  By now I would have hoped to see some details of this alleged new beast that EFSF has morphed into.  While I search for detail all I could see, so far, are denials by Germany and Spain, some support from Austria, and additional rumors of what is to come.  Every European politician outside of Germany can say this is a great idea, but if the money man doesn’t go along, is there really a deal?  This isn’t a democracy, and only Germany controls German money. There was a brief headline that this new plan could cause S&P to downgrade Germany and France.  As a back-up plan, there is talk about letting the EIB do the heavy lifting.  Just in case the world wasn’t already controlled by enough 3 letter entities, welcome the EIB to the IMF, ECB, and FED party.

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