WIth the EU underwriting the cost of CDS for the banks bond purchases on for all of EU zone, a huge safety valve has just been created. The market will rally once the news is absorbed and spreads. LINK:http://www.bloomberg.com/news/2011-11-25
That link isn't coming up, and a quick search on main page didn't bring up the page. Assuming it is as you say however, from where is that CDS money coming? You say the EU, but which body?
Even with the ECB aggressivley purchasing bonds last week, 7% did not hold which is the threshold based on Greece. There were few other buyers.I am Bill Hess.
Sorry the link didn't work. Check BLOOMBERG NEWS for the following headline/reporter name:EU May Shield Banks From Costs During CrisisQBy Aoife White and Esteban Duarte - Nov 25, 2011 6:00 PM CT inShare1
I concur and suspect there will be some sort of additional "bullish" news out of Euroland tomorrow. FAZers should not be surprised, yet another rabbit pulled out of the hat.