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ECB Suspends Rating Requirement For Portuguese Collateral
A stunner in the JCT press conference, who just announced that the ECB is willing to accept any junk that comes its way. Specifically he said that the ECB has decided to suspend a rating requirement for Portuguese collateral, and that the ECB will shortly issue a press release on the matter. Obviously the bank is now making stuff up as it comes alone. He also added that the suspension will be maintained until further notice. Expect this move to affect Italian, SPanish and all other insolvent country debt shortly as it becomes all too clear that the ECB will do everything in its power to give out cash against insolvent paper. And now you know what Europe's QE looks like.
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The F-A-R-C-E is strong with the ECB
ECB: "You want us to give more money to the banksters. You think that QE is good for the economy."
Public: "We want you to give more money to the banksters. We thinkt that QE is good for the economy. Move along."
Man this is beautiful!
I've got some old McDonalds napkins and a pile of used paper bird cage liners I could cash in!
What better way to say that Portugal is bankrupt too.
Fucking stupid.
NINJA loans, once the domain of people, has now gone to countires as they can sell NINJA junk to the ECB.
Our paper is so good we don't need a rating...
Cash for Junk(ers)!
LOL
should be good for another 90 SP500 points next week.
there is but one rule, and that is to maintain the status quo. all other rules are meaningless.
and this is why the E/U just popped? really?
pathetic.
Ahhhhh, the status quo are threatened. So, change the rules of the game.
Must prevent consequences accruing to anyone in the top 2%.
Game to Trichet, set and match TBD.
Exactly - these One Worlders are running scared because their poster child of soverign control (i.e. the EuroZone) is crumbling like a cracker into Liesman's 14th bowl of chili
Exactly, the Euro was supposed to be the shining model for the oncoming total 1 world currency, cant have it all collapse NOW can we? Not on the cusp of the big rug pull out!
There is already a one world currency. Been around for years. Called Gold.
Any bondholder that buys this paper deserves what he gets...
So in other words, their answer is close their eyes, plug their ears, and pretend everything is ok?
Edit: IGNORE ALL RISKS FULL STEAM AHEAD!!!
Yes, because everything in the world is now perception, PR campaigns, full faith and credit, image is everything. The economy is healthy if people believe it is healthy.
Wasting away in Pollyannaville.
Hey, why not? They are just following the Fed. Next step they will buy those directly from banks ala MBS buying spree the Fed went on.
yep. each bank will start dumping to it's host government until all the liabilities are squarely on the back of the people. then comes the default.
no wonder
look at rates : 2- 5 yy rate is over 15%
PORTUGAL IS OVER..
alx
http://online.wsj.com/mdc/public/page/2_3022-govtbonds.html?mod=mdc_bnd_...
And Ireland is next. 15.9% 2 Year.
http://www.bloomberg.com/apps/quote?ticker=GIGB2YR:IND
Money printing QE by the ECB should weaken the EUR/USD to at least 1.35
Stop it with the market fundamentals.
The EMU can't possibly win the race to the bottom (our printers are far more insane than their printers), but that probably won't stop them from trying.
" stop it with the market fundamentals"
Exactly..how do you invest when the rules change..and they ...TPTB...just do things that when we find out two years later...makes us puke...
Hahahaa, the eurofanatics are building the biggest bubble ever! Must.preserve.wet.french.daydream.at.all.costs.
Sold some ES here. This news should spark a rally from the lows, not a break away gap on a market trading above its traditional bands. Things are becoming desperate but so far there is no apparent reduction in risk appetite.
The sheeple are now so placated you couldnt wake them out of their slumber with a tazer. Just how they want everyone, totaly expecting markets up 1% daily from here on out.
Ive never seen such crappy manipulation statements...
Trichet is a liar.
just when you think you can relax, out pops another screaming baby.
:)
And each one uglier than the last.
yip, this one was ginger.
welcome european toxic bank :D
Good for a $0.40 pop in silver.
Are they trying a new approach? Raise rates and run the presses at the same time?
Smacks of complete and utter desperation to keep the falling plates from falling
FULL STEAM AHEAD?
Just like the Titanic! That wasn't supposed to sink either.
ECB to the world: PIIGS are bankrupt, but that doesn't matter, ratings mean nothing bitchez.
By tomorrow the ECB will just say Portugal and the other PIGS can not be found on their maps, they just dont exist.
So its kinda like farting in a lift?
Or worse, sharting in a lift.
These are not the PIIGS you're looking for.
Move along.
I'll bet the ecb pays face value too.
Who cares? Buffett just told the world that everything is fine...you gotta luv CNBS. Long and strong looking for Dow 40,000!
WOW ... First they complained the ratings agencies didn't do their job and now they complain that they are doing their job too well.
"We are concerned about price stability."
"We take any crap as collateral and give you cash."
LOL.
So if the Portuguese gave them that smelly soup they make, they would accept that?
I love the smell of desperation in the morning!
So who in their right mind would buy Portuguese debt. Oh I know Bernanke. What an f'ng joke.
ECB and PBoC
Setting sail for a European tour? Come do it with the Maiden Lane Group LLC as we set off for Europe. Between our two ships, we can transport over $3 Trillion in toxic bonds to and fro from each continent.
Is this what pushes us through the highs from late April early May? I guess the destruction of the Middle Class will continue unabated at this point... oil is going to surge higher with risk. So much for the brief recovery in consumer spending. LMAO!
Look Tyler
Goverment defecits is the only smooth mechanism to reduce the leverage withen the monetory system (outside of the ECB increasing its base by printing non govermental euro cash)
I would have prefered to see a default on everything but consumer deposits and sovergin bonds but this is unlikely when the fox is guarding the hen house.
Nifty update::
http://markettechnicals-jonak.blogspot.com/
Is this even legal. Are they just allowed to make this stuff up as they please. What investor would ever put money in these toxic assets with no recourse or rating.
Legal? We dont need no stinkin 'legal' in the Brave New World!
Nope, but what do they care:
http://www.ecb.int/mopo/eaec/fiscal/html/index.en.html
Institutional arrangementsA number of institutional arrangements for sound fiscal policies have been agreed at the EU level, also with a view to limiting risks to price stability.
These include:
All the power people: IMF, ECB, politicians of Germany and France, will do everything to prevent big bank failure. Will it have the same effect on equity markets as TARP and QE? Maybe not. The US programs were a sea of liquidity pumped into Wall St. The Euro response seems to be more targeted. After all, the ECB just raised rates today. That the ECB will accept weak credits doesn't hurt equities, but maybe it won't be as stimulative as the US response.
-Maybe it wont be as stimulative as the US response-
Which wasnt stimulative at all to anything real, just bubble paper stock markets.
Maintaining collateral requirements would have hurt equities through reduction in leverage. I think the big question is whether Moody's is acting in line with the desires of Bernanke & Geithner or against them.
Putting the Moody's question another way- What is the dominant trade by TBTB?
Big Money (Treasury) wants a fear trade/dollar bounce/deep treasury refunding and purchase market
Big Money (OPEC & China) want to reduce dollar exposure/exit dollars
Both sides (which are opposed over the intermediate to long term) benefit in the short term by a strengthening dollar.
The actual identity of 800lb feces flipping hominid would indicate two very different points in the current circle.
WOW look at oil go! Up another $2.50 on open.
Dagong Rating Agency rates as JUNK " ECB Portfolio"
Fuk all ECB members.
Banksters¡
'Its all junk rated garbage'....HEY I know! Lets run up bubble stocks some more!
Got to do something to keep these sheeple in their trance after all.
Nevermind Obama just offered up Socialist Security and Mediscare to be carved to pieces for a 'budget deal', the sheeple know nothing.
good morning SHeep,
Trichet and Draghi should be burned...in lies.
Please dont buy this farce...the ECB is a junk entity.
austerity rewarded by the ECB v profligacy rewarded the FED...i'll go with the Europeans on this one!
So, any Portugal in a storm?
Pretty obvious with moves like this of exactly how dire the situation is. I've been expecting rule changes all the way to complete collapse. Along with a lot of fingerpointing.
Things collapsing no matter what trick they pull? Just change the 'rules'...LOL as if any existed in the first place.
Well I see the 3% of us that own PM´s going to 5% pretty fast....
Thank god I did my monthly cost averaging operation (becoming my own central bank, swapping €-currency for real money) yesterday.
while thanking, do not forget to pray that you will not be forced to exchange your real money on the black market in an unworthy way when things get 'interesting'. 6102. I pray hourly.
I have some questionable titles to prime swampland in florida on which a bridge was built sometime back. I think the bridge is still there, just a few feet underwater due to global warming or soft soil, one of the two. Can I get a few million euros for that collateral so that I can go buy some physical silver?
EURUSD Support seen in the 1.4170 area. http://forex-blog.org/
Ok so we have :
manipulated data
money printing
mark to fantasy
no rule of law for banks/elites
principle writedowns
PM supression
SPR oil sales
debt monetization
quasi govn Dow pumping
negative real rates
ratings agency bypass
What else?
Whats next?
Who in their right mind is investing in this?
Capitalism looking pretty good right now eh? LOL.
It is not capitalism, it's "financialism".
Hear! Hear!
"Financialism" !!! I like this word !
-What's next?- WWIII
The ECB ignoring the ratings of Portugual will only lead to the rest of the world ignoring the ECB. It will take more time but it will become ever more toxic for the EU as a whole.
It seems JCT is now willing to burn taxpayers money to light his bankster buddies' cigars. How generous of him.
I wonder how long it will be before vegas will post odds on who blows up first.
1. U.S.A. :with their debt ceiling and the 14.3 trillion in debt and the 75 or so trillion in un-funded liabilities and their commie obama
2. Europe: with the wee little PIIGS saying weeeeee all the way to the ECB.
3. Japan: with their 240% debt to G.D.P. ratio and their radioactive isotopes and monster natural disasters and their monster infatuation (godzilla, mothra, ect.)
4. China: with their 10% of G.D.P. is actually shitty loans that will never be paid back, their ghost cities and their massive inflation/property bubble
wait you don't need vegas. There's a credit default swap that. (apple can go ahead and give me credit for the credit default swap app.)
well, i know the $ bulls hate it, but thats clearly bullsih for stocks and the euro. It means: under ALL circumstances, the ecb will continue to hand out fresh money to the PIIGS. Full Stop Period! They can do this not forever, but very very long. Too long for the equity bears, respective the $ bulls.
I'm starting to come around to your view -- of course my beliefs and emotions cloud my view of it, but someone mentioned Japan and 20+ years of this. If the world ends up in the shitter via slow gradual shittiness, rather than shockingly-swift and violent shittiness, I think this is how it goes - - more handouts, all the time, never-ending.
. . . could be years+. Fuckin' A.
You get it! When your plane is burning, you want a SOFT crash landing. And who knows, perhaps the horse learns to sing.
.
JCT: I need a bigger shovel.
PBOC: Right away..... use excavator, we have many extra...
Draghi: WTF......
"..give out cash against insolvent paper.."
Exactly what FED is doing.. only "..give out paper against insolvent paper..". Triple A, of coarse.
Well there go my puts. Why I ever thought they were going to play by the rules is beyond me. Live and learn. At least my PMs will thrive from this.
In the long run yes, but what are your thoughts about the short term? Recent bump in PMs was primarily due to fears of the rating agencies saying Greek rollover would be a default, yes? So the ECB says they'll shove the bailouts down our throats no matter what. With a debt ceiling deal near, does that lead to a brief (VERY brief) strengthening of the USD and a slide in equity/commodity/metal markets (like ZH and many others have pointed to HAVING to happen if QE3 is to be implemented)?
WELL, what is next?
Since ECB has dispensed with the rating agencies, why not CHANGE THE ACCOUNTING RULES to MARK-TO-MODEL standard.
This is sure to help improve unemployment in EU as more investigative accountants will have to be engaged to perform more forensic accounting analysis.
exactly: 'MARK-TO-MODEL' is the keyterm. The US mark-to-model CPI with 'Chain CPI' and the EU mark-to-model junk to ecb-grade.
so is life :-)
Anyone have any insight as to what this means for Greek rollover (specifically regarding ECB's comments on the rating agencies potentially unanimously rating it as a form of default)?
Seems obvious to me but maybe I'm just being stupid. I'm understanding Trichet's comments as basically saying they're going to push through all bailouts (including Greece) regardless of what S&P, Moody's, and Fitch say.
Reason why I ask is the recent bump up in gold and silver prices seems tied to fears that Moody's would side with S&P.
Thoughts?
"..regardless of what S&P, Moody's, and Fitch say.."
Exactly. Of coarse, you can go on trusting the meaningless triple A's, who cares.
Hey...Could you hold these two cheese burgers and a large fries for me,until I give back the 85 billion dollars you loaned me...
Thanks in advance and have a nice day... Sincerely yours...Greece.
OOOPS...,I meant sincerely yours...Portugal. .
I see some Fuck-tard don't like SheepDog-One.
Question #1:
Who wants to destroy the euro and the UE?
So, according to ZH retards, the EUROPEAN CB should bend over to AMERICAN Moody's?
Rednecks bring the LOLs yet again