MORE MAKE BELIEVE EUROPEAN STYLE

In the Land Of Make Believe,  Politicians Consult, Debate, and Deliberate over Difficult Decisions about Printing Lots of Money to give to the Banks:

Bloomberg reports today on these Difficult Decisions in the Land of Make Believe: "European efforts to speed the setup of a permanent rescue fund have lost momentum amid a clash between Germany and France over provisions to force bondholders to share losses, three people involved in the negotiations said.

Finance ministers this week failed to bridge divisions over the European Stability Mechanism, lessening the chances of activating its 500 billion-euro ($680 billion) war chest next July, said the people, who declined to be identified because the talks are in progress.

Operating the ESM in combination with the 440 billion-euro Temporary Fund next year would potentially boost Europe’s anti-crisis resources to 940 billion euros.

Officials had hoped to bring the ESM’s start date forward to mid-2012 from its ultimate deadline of July 2013, the people said. Germany and the Netherlands are resisting pleas by France, Spain, Portugal and Ireland for the bondholder-loss provisions to be stripped from the ESM treaty, the people said.  

It’s possible that officials will still beat the 2013 deadline, the officials said. "

Gee, ya think?  Because in the Real World  that 1.3 Trillion Dollars is going to the banks and well before 2013, or the world markets (IE: The Banks' Slush Fund) will implode.

But it looks good if the Politicians pretend this is a Difficult Decision.

In a related Bloomberg Story from the Land of Make Believe:  "U.S. stock futures rose, signaling the Standard & Poor’s 500 Index will rebound from its biggest selloff since August, as the European Central Bank was said to buy Italian bonds.

The ECB bought Italian government bonds, according to five people familiar with the transactions, who declined to be identified because the deals are confidential. It also bought Spanish securities, two of the people added. The ECB was not immediately available for comment when contacted by telephone."

And Meanwhile back in the Real World, where on Earth do you think the ECB got ALL THAT MONEY to buy all that BAD DEBT that will NEVER EVER be REPAID?