Portuguese Government Rejects Austerity Plan, Government Collapses

[Ares]

Just out:

PORTUGUESE PARLIAMENT REJECTS GOVERNMENT'S DEFICIT-CUTTING PLAN
PORTUGAL'S PARLIAMENT BACKS RESOLUTION AGAINST GOVERNMENT PLAN

Next up: government resignation, crisis, bail out, etc. You know the drill.

Very modest drop in the EURUSD for now:

<img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bernanke/Screen%20shot%202011-03-23%20at%204.03.22%20PM_0.png"/>

http://www.zerohedge.com/article/portuguese-government-rejects-austerity-plan-government-collapses

[Ares]

Portuguese President Prepares To Accept Jose Socrates' Resignation; Government Collapse Imminent

From Market News: "Portugal's President Anibal Cavaco Silva is prepared to accept the resignation of Prime Minister Jose Socrates and is getting ready to call an election to choose a new government, Portuguese daily Jornal Publico reported on its website Wednesday evening....The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund." Look for Portuguese, Irish and all out toxic fallout (pardon the pun) to be bought with impunity by JC Trichet as the entire market goes bidless.

More from MNI:

The news comes as the Parliament nears the end of a debate on the minority Socialist government's proposed package of new austerity measures amid strong signs that the bill will be defeated. Rejection of the measures, which are strongly endorsed by Portugal's European Union partners, would amount to a vote of no confidence in Socrates' government.

Socrates is planning to meet with Silva at 19h00 GMT/1500 EDT, and it is widely anticipated that he will tender his resignation in that meeting if the parliamentary vote goes as is widely expected. Socrates is scheduled to address the nation at 20h00 GMT/1600 EDT this evening.

Never too late to load up on those Irish CDS. Just for heaven's sake do not use Citi, Bank of America, JPM, Goldman, Deutsche, RBS, Barclays or BNP as counterparties.

http://www.zerohedge.com/article/portuguese-president-preapares-accept-jose-socrates-resignation-government-collapse-imminent

[ximmy]

This is potentially a big thing... domino effect European collapse... been keeping an eye on it... eek!

[tekrunner]

This is potentially a big thing... domino effect European collapse... been keeping an eye on it... eek!



Exactly, the poor get hit hardest first and Portugal was always going to be the first domino as you say. Spain is vying to be next.

[ximmy]

Portugal: EU "Betters" crack down on commoners in the heart of Europe... continues to Bomb Gaddafi for doing the same...

http://www.youtube.com/watch?v=KHAeInhkuJ0

[gunDriller]

how can the stock market "keep it up" with news like this coming out ?

i think the stock market is going to lose its erection, soon.

doesn't matter how much Viagra the Plunge Protection Team pumps in.

it's game over. :o

wonder how this will affect the price of silver ?


meanwhile, the Aussie market, ASX, is up 5/8% for the Friday March 25 trading day.

do the Aussie's have a PPT ?

i think the American PPT probably pinch-hits in Australia too.


it's been a long day. 8)

[ShortJohnSilver]

Portugal has 382.5 tons of gold, 14th largest in the world amongst countries.

Some bunch of bankers wants it, and they will destroy Portugal's eonomy to get it.

[osoab]

All the while we have our own mini-crisis of funding within in the halls of D.C.

Stop-Gap Funding Creates Budget Crisis for Federal Agencies (http://economyincrisis.org/content/stop-gap-funding-creates-budget-crisis-federal-agencies)


Congress has now passed six continuing resolutions to fund the federal government while working out the actual budget for 2011, creating uncertainty and threatening to derail the efforts of several federal agencies.


The current spending bill expires on April 8th, bringing up yet another threat of a government shutdown, after lawmakers narrowly avoided one just two weeks ago. While Congress continues to fail to fund the country, it is failing the people of this nation, who deserve an efficient and functioning government. As members of Congress complain about waste, perhaps they should take a hard look at their own work these past few months.

Fluff piece of an article, but I was looking for the next end of funding date.

[Horn]

Portugal has 382.5 tons of gold, 14th largest in the world amongst countries.

Some bunch of bankers wants it, and they will destroy Portugal's eonomy to get it.


They've been trying forever to gain Portugal, its a fruitless endeavor.

[Libertarian_Guard]

Portugal has 382.5 tons of gold, 14th largest in the world amongst countries.

Some bunch of bankers wants it, and they will destroy Portugal's eonomy to get it.


What Portugal has, and what Portugal holds, may be two different things.

Where does Portugal store their (?) gold? London? Zurich?

As crunch time draws near, this is an important question.