{"id":420,"date":"2010-05-09T21:44:00","date_gmt":"2010-05-10T01:44:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=420"},"modified":"2018-08-19T10:07:27","modified_gmt":"2018-08-19T14:07:27","slug":"take-that-financial-markets-the-eu-imf","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/05\/09\/take-that-financial-markets-the-eu-imf\/","title":{"rendered":"&quot;Take that financial markets!&quot; &#8211; the EU &amp; IMF"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">Very, very early Monday morning in Europe, the EU in conjunction with the IMF announced a massive financial bailout package that is comparable in size to the U.S. TARP funds of the last recession.\u00a0 Specifically, the components of the EU plan are as follows:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">440 billion euros of loans from <span class=\"goog-spellcheck-word\">eurozone<\/span> governments<\/span><\/li>\n<li><span style=\"font-size: 16px;\">60 billion euros from an EU emergency fund<\/span><\/li>\n<li><span style=\"font-size: 16px;\">220 billion euro from the IMF<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 16px;\">In total this is 720 billion euro (!).\u00a0 These monies are to be allotted to <span class=\"goog-spellcheck-word\">eurozone<\/span> economies struggling with the global recession and their own fiscal ridiculousness.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Analysis:<\/strong> The financial markets have had their heart stop over the last several trading sessions and have needed a little bit of <span class=\"goog-spellcheck-word\">electro<\/span>-shock to restart the heart.\u00a0 In other words, they needed something dramatic other than the hot air of talk &#8211; the EU version of mouth to mouth resuscitation.\u00a0 I am fairly certain that the size of the bailout package is so gigantic and with specific amounts pledged that the financial markets will be revived.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Very importantly, over the next several weeks the EU will actually need to get these monies passed by individual members.\u00a0 Fortunately this deal was negotiated with the full participation of EU member finance <span class=\"goog-spellcheck-word\">minist<\/span><span class=\"goog-spellcheck-word\">ers<\/span>.\u00a0 Hopefully that results in easy passage.\u00a0 Mitigating against that is the fact that quite a few EU states have prime ministers up for re-election and the EU bailout package is not popular with the average Jose or Jeanne EU citizen.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">My intuition tells me that this package will succeed in staving off <span class=\"goog-spellcheck-word\">eurozone<\/span> disaster.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Importance grade:<\/strong> 10; as I have said many times before, financial markets move exceptionally fast.\u00a0 The speed and magnitude of the <span class=\"goog-spellcheck-word\">eurozone<\/span> crisis was breathtaking in its fulfillment.\u00a0 Granted, the cracks in the EU are something I have been tracking for a year and a half and the markets ignored the structural cracks.\u00a0 But once they paid attention, the response was nearly instantaneous.\u00a0 The most critical issue to investors right now is the European debt and fiscal crisis.\u00a0 In my opinion, that crisis of confidence has been averted.\u00a0 It wouldn&#8217;t hurt to cross your fingers and say a few prayers, though!\u00a0 But where do I stand with my capital?\u00a0 I have been investing my cash over the past week.\u00a0 Cash that I had been sitting on since November.\u00a0 Wanna join in, too?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Very, very early Monday morning in Europe, the EU in conjunction with the IMF announced a massive financial bailout package that is comparable in size to the U.S. TARP funds of the last recession.\u00a0 Specifically, the components of the EU plan are as follows: 440 billion euros of loans from eurozone governments 60 billion euros [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-420","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=420"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/420\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}