What would the weekend be without at least one rumor that Europe is on the verge of fixing everything, or failing that, planning for a master fix, OR failing that, planning for a master plan to fix everything. Sure enough, we just got the latter, which considering nobody really believes anything out of Europe anymore, especially not something that has not been signed, stamped and approved by Merkel herself, is rather ballsy. Nonetheless, one can’t blame them for trying: “The chiefs of four European institutions are in the process of creating a master plan for the euro zone, the daily Die Welt reports Saturday, in an advance release of an article to be published Sunday. Suggestions targeting a fiscal, banking, and political union, as well as structural reforms, are being worked out by E.U. Council President Herman van Rompuy, E.U. Commission chief Jose Manuel Barroso, Eurogroup Chairman Jean-Claude Juncker and European Central Bank President Mario Draghi, according to the article. The plan is to be presented at a summit of European leaders at end of June, the article says.”
Less than credible sources report that Spiderman towels (which are now trading at negative repo rates) and cross-rehypothecated kitchen sinks are also key components of all future “master plans” which sadly are absolutely meaningless since the signature of Europe’s paymaster – the Bundesrepublik – is as usual lacking. Which is why, “the plan may well mean that the euro zone adopts measures not immediately accepted by the whole of the European Union, the article adds.” So… European sub-union? Hardly strange is that just as this latest desperate attempt at distraction from the complete chaos in Europe (which will only find a resolution once XO crosses 1000 as we andCiti suggested two weeks ago and when the world is truly on the verge of the abyss), none other than George Soros has just started a 3-month countdown to European the European D(oom)-Day.
Speaking at an economic conference in Trento, Italy, Soros said that the euro crisis – which he defined as a sovereign debt crisis and a banking crisis closely interlinked – threatened to destroy the European Union and plunge it into a lost decade like Latin America in the 1980s.
Soros said he expected Greek elections in June to produce a government willing to stick by the current bailout agreements, but which would find it impossible to do so.