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Trichet Q&A From ECB Press Conference: "Appropriate To Continue To Buy Bonds"

Submitted by Tyler Durden on 06/10/2010 09:20 -0400

Let Europe's monetization continue indefinitely! Surely this will do miracles for the EUR once Goldman is done buying all its clients are selling to it today. Other soundbites from his conference earlier below: pick the odd lie(s) out:

Decision on 3 Month operations was unanimous
EUR is a very credible currency and has an exception track record [no comment here]
Q1 growth was "not buoyant, Q2 to be more so"
Bond programme is designed to ensure effective monetary transmission mechanism
Says non-standard measures are temporary in nature
Welcomes recent decision to set up stability facility
Welcomes steps by governments to do extra fiscal consolidation

To which Nowotny adds that:

The Eurozone economy is more bank based than the US [and thus far more bankrupt probably]

and FTW:

European bond buying program is not quantitative easing, but to ensure liquidity in dysfunctional markets

Where have we heard that before?

And lastly,a quick follow up from Market News:

European Central Bank President Jean-Claude Trichet said today that it was clear that the money markets are not
functioning perfectly and so the ECB had been obliged to take action.

Speaking at a press conference following the ECB’s monthly Governing Council meeting in Frankfurt, Trichet said:

“We see there is a new tension as far as demand for liquidity…it means we have a money market that is not functioning perfectly, that’s absolutely clear.”

Trichet said that the ECB was doing its best to restore order in those markets and so assist the transmission of policy:

“One decision, one institution, one currency. We are helping to restore appropriate functioning of markets, that were hampering monetary policy transmission.

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Thu, 06/10/2010 - 09:23 | 405688 ZeroPower

EUR is a very credible currency and has an exception track record

Indeed, 11yr track record is full of stability and not a single period of volatility!

Thu, 06/10/2010 - 09:29 | 405697 Insert witty title

The most frightening and frustrating part was his comments on the EU region and Euro currency block needing much more government, more regulation and more authority. The march into the abyss continues.... where is my New Zealand passport, must get that thing updated...

Thu, 06/10/2010 - 09:33 | 405708 ALPO

ZH is like drinking from the firehose.

I'm short EURUSD to the tune of $100k via DRR and I can't decide whether to leave it there or not. (Sorry I'm only leveraged 2x - I can't run with the big dogs).

Thu, 06/10/2010 - 09:38 | 405715 hellboy

wheres my wooden paddle? need to smack that eur monster back below 1.21!!!

Thu, 06/10/2010 - 09:44 | 405720 Assetman

Says non-standard measures are temporary in nature

Is that so?

I'm sure that's well meaning. And I'm sure some will truly be temporary.

But just ask Uncle Ben how some of his temporary measures are going. I'm sure he intended not to buy any more MBS after his program was officially over, but he just couldn't help himself.

It's a shame that the Euro couldn't retain reserve currency status. But the good part about that is that the markets will decide if ECB is full of it or not via the Euro. Too bad we couldn't do that with Uncle Ben.

Thu, 06/10/2010 - 09:47 | 405726 monmick