Watch Trichet Press Conference Following Today's Rate Decision Live

Tyler Durden's picture

Earlier today, the ECB decided to keep rates at 1.00%, as expected. There were no major or even minor moves in the EUR pairs following the announcement indicating that rumors of a rate hike by the ECB are still very preliminary. Yet the one issue everyone wants to hear more information on is when the latest "rescue" ponzi scheme, the EFSF, will become active, which will allow Europe to wash its hands of all direct monetization allegations, and blame it all on a CDO. Of course, when the CDO itself implodes it will be Europe, and mostly Germany left to pick up the pieces, which is why Merkel is so far the only party which has refused to endorse the outright monetization power of the EFSF. For an update of the ECB's views on the EFSF watch the press conference starting any minute now.

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Sudden Debt's picture

Will he kill the euro now or next time?


ak_khanna's picture

A single currency for an economy as strong as Germany on one hand and relatively weaker economies like Greece or Ireland on the other is not sustainable in the long run. The idea of the stronger countries in the Euro zone to keep on bailing out the weaker ones repeatedly will be a difficult one to sell to the citizens of the economically stronger countries.

THE DORK OF CORK's picture

The Irish economy is potentially a viable robust entity - however we have become a dumping ground for the European shadow bank system - nobody I mean nobody could manage to pay off these gross and artificial liabilties.

Cdad's picture


There were no major or even minor moves in the EUR pairs.

You might want to check that again, as it would seem that the totally depraved USD stud man is cracking the closet door in L. Blankfein's office again.  And this time, he is taunting L. with is bottle of lube.

In the meantime, Little Miss Euro is strapping on her knee pads.

It would seem to me to be a movie making kind of day.  The whole thing gives me the creeps.


oogs66's picture

EFSF2 should be interesting.  EFSF does not work for just buying bonds and any new structure will need bells and whistles to get the AAA rating.  Why don't the governments just each buy debt outright?  Seems like rating driven, financially engineered solutions are still the flavour of the day.  What if Japan and/or China join EFSF2?  That could be a big positive for the market. 

bania's picture

gold popping a big morning boner

Cash_is_Trash's picture

Ready to fuck the ass of the fiat bitch

SilverRhino's picture

Silver spiked up more than a little on this.

DaBernank's picture

Every word out of JCT's mouth sinks EURUSD another pip.

gwar5's picture

The wallowing about continues in Europe. Just when I thought Benacide was more pathetic.

The West it dying and the birth pangs of radical Islam are rising to take advantage.

Cash_is_Trash's picture

The West it dying and the birth pangs of radical Islam are rising to take advantage.

The west is painfully committing suicide; monetarily and demographically.

Just look at all the African, Indian, Asian and other immigrants into Germany, France, Britain, United States and Canada. The west is so fucked it's not even funny.

Millions have entered these countries with no intention to abide by the rules and common practices that made the same nations very strong. This is our undoing, our trojan horse.

misterc's picture

At some point the weak Euro, the hand that feeds, turns into the hand that bites


It makes me sick listening to Trichet. Inflation now officially, officially, at 2.4% and still, no raise of interest rates. This system is so damn rigged! Now he's talking about rules and applying to them,while at the same time accepting Ireland printing away its own Euros.

pazmaker's picture

I thougt Sarkozy said  "don't bet against the Euro and they would do anything to defend it?"

Trichet just caused it to shift back to a downtrend vs USD.....down 80 pips from the movement of his lips!

uhb's picture

Nope! The EUR now almost 1ct up against the $

uhb's picture

Hey Boys,

The Trichet is not a masterbrain, but compare him to the Bernank... at least they're not buying their own treasuries (until now)

Grand Supercycle's picture

EURUSD daily chart rising wedge confirmed.

A new leg down begins.