EUR

@Station I agree with you, US jobs data are manipulated to the nth degree...the whole scam would make any 3rd world dictator proud

HEHEHEHheheh what did i say, there's been big time manipulation going on lately it will appear clearly later, but this is what happens when you count one census worker as 4 jobs. I've been saying this for a very long time these figures are not sustainable cuz there hasn't been any real jobs been created, I forgot earlier which Airline it was but they announced 180k lay off. Boyz and Galz this is all artificial, puff puff, just make Up

ECB's Greek exposure is bigger, by some margin, than its own capital and reserves.
So far the ECB has yet to make a call for more capital to support its lending operations to distressed European financial systems. But if a run on banks, as witnessed recently in Greece, is repeated in countries such as Italy, Portugal and Spain because confidence in institutions wavers further, this situation will change as a full scale banking bail out gathers.
Now the ECB is backed by Eurozone nations, but when the calls for more capital come, it'll be pretty clear to Europeans that the ECB has been playing with other people's money. Daily Telegraph


Weak European nations are counting on the European Central Bank to help bail them out... but how financially strong is the ECB itself?
Given that it only has 66 billion euros of capital and reserves according to the Telegraph, not very.
It had already backed Greek banks to the tune of 88.4 billion euros as of the end of April, plus has bought 25 billion euros of Greek government bonds. Moreover, its financial commitments likely increased substantially in May, though by how much isn't clear.

The Hungarian government has preemptively warned that it will soon outline massive economic restructuring... since it will soon, ominously, disclose the true state of its 2010 budget.
The Hungarian currency, the forint, fell and Hungarian bond yields rose on the news:
CNBC:
"After the figures reflecting the true state of the economy (become public), within 72 hours an economic action plan must be put on the table," Prime Minister Viktor Orban's spokesman Peter Szijjarto told TV2 television.
"It cannot be about...an adjustment, about patching up (the economy)...measures aimed at improving the financial situation must be linked with deep structural changes," Orban told the same television channel over the phone from Brussels.
...
He did not give details on the plans. His spokesman reiterated the budget was in a "much worse" state than what the previous government put down in the budget law and "skeletons were continuously falling out of the closet".
While the central bank has indicated a budget deficit of jus 4.5% of GDP, some government officials have suggested a figure north of 7%. The EU has pressed the government to disclose the extent of any problems as soon as possible so that they can be addressed, in order to avoid another situation like Greece where problems were hidden an unaddressed for too long.



Remember! again! this announcement is still not confirmed yet, market is reacting just on the this fear alone that it might be true. But in my 8-9 years I have learned that the timing & creditability of such comments may be corrected later. The main reason today is Credit Suesie.

Rumor of a French bank with a large derivatives loss (SG?)

Greek-German spread back to 550bps

Spain-German spread widens out to 191