Tuesday, February 9, 2010

Greek rescue rumor on deck?

Even the FT can't contain its sarcasm. Maybe it's because the whole world is betting against the euro, and the hedge fund boys want the euro down.

Which means its time for those bets to start unraveling.

Dow below 10,000! Europe on the fiscal precipice! Never fear, Jean-Claude is coming.

The euro rallied, commodities perked up and global stocks recovered their poise after it emerged that Jean-Claude Trichet, European Central Bank president, was to leave a summit with his peers in Australia early and fly to the rescue of the eurozone.

Mr Trichet’s attendance at Thursday’s special meeting of European leaders, called to address the region’s economy, was seen as evidence that a deal to support Greece would be thrashed out.

And Art Cashin's take:

Hark! Do I Hear A Bugle? Is That The Cavalry Coming? – The Euro is rallying this morning and, thus, so are U.S. stock futures. The catalyst appears to be an announcement that ECB President, Jean-Claude Trichet, is leaving a meeting in Sydney early to return to Europe. The presumption is that he is returning to help set up some kind of rescue package for Greece. Since it’s a long plane ride, we don’t expect any hard news soon. That could keep the rumor alive.

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