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EU Leaders Praise ECB Supervision Agreement, Market Shrugs

Tyler Durden's picture





 

Rightly so, the FX and equity futures markets are almost entirely ambivalent at the farce that at 430am in Brussels, the EU leaders announce a compromise agreement on ECB banking supervision:

  • *BARNIER HAILS 'HISTORICAL ACCORD' ON ECB BANK OVERSIGHT
  • *BARNIER SAYS EUROPE HAS SHOWN 'CAPACITY TO TAKE ACTION' (yay)
  • *MOSCOVICI SAYS SUPERVISION IS FIRST STEP IN EURO BANKING UNION
  • *MOSCOVICI SAYS ECB WILL BE SUPERVISOR FOR ALL BANKS
  • *SCHAEUBLE SAYS AGREEMENT REACHED ON EU30B OVERSIGHT THRESHOLD
  • *BARNIER SAYS SUPERVISOR IS FUNDAMENTAL FOR FINANCIAL STABILITY
  • *BARNIER SAYS ECB OVERSIGHT NEEDS PREPARATION OF AT LEAST A YEAR (umm)
  • *ECB COUNCIL WON'T HAVE FINAL SAY ON BANK REGULATION: SCHAEUBLE (oops)

Of course, none of this matters - what is the ECB going to tell them "de-lever more!", "buy less of your sovereign's debt?" Until there are pooled deposit guarantees (nein nein nein) this is irrelevant and markets are treating it thus - no matter the PR efforts.

 


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Thu, 12/13/2012 - 00:04 | Link to Comment piliage
piliage's picture

Great. Everything's fixed. I'm sure the Greek people will be  thrilled to hear the good news.

Thu, 12/13/2012 - 00:22 | Link to Comment knukles
knukles's picture

Damn. 
That makes two of us.
Why couldn't they have just done fixed it in the first place and missed all the pain?

(soft whimpering sounds)

Thu, 12/13/2012 - 04:20 | Link to Comment Michaelwiseguy
Michaelwiseguy's picture

This shared is getting ridiculous.

Thu, 12/13/2012 - 01:00 | Link to Comment Dareconomics
Dareconomics's picture

This is just a face-saving news release. There is no banking union without all the EU countries agreeing to be joint and severally liable for deposits and winding down insolvent institutions.

http://dareconomics.wordpress.com/2012/12/12/cosmetic-can-kicking-bankin...

Those finance ministers could tell the mainstream (old) media that Greece will have a sustainable debt load by 2020, Spain only needs €40bn to clean up its banks and Portugal will begin growing next year and they'd write that. They did? Oh.

 

Thu, 12/13/2012 - 01:22 | Link to Comment piliage
piliage's picture

They are so good, those EU financial wizards, that they can't get the debt load down in Greece to 120% of GDP by 2020, so they opted for 2022. Such control, such wisdom...

Of course, Germany's economic forecast yesterday predicts a recession in 2013, but I'm sure the wizards can fix that too with pixie dust and magic. Heck the markets were up yesterday, so it must not be a problem...

Thu, 12/13/2012 - 08:15 | Link to Comment HoaX
HoaX's picture

At least in Europe the debt load is going down, instead of up, up and AWAYYY! like in your great US. You already hit 100% some time ago, lets bring it to 150 next year!

Thu, 12/13/2012 - 14:57 | Link to Comment piliage
piliage's picture

If you think the Greeks will lower their debt load through their projected 'growth', I'd suggest you put the bong down and seek immediate treatment.

 

 

 

 

 

Thu, 12/13/2012 - 04:06 | Link to Comment Silver Bug
Silver Bug's picture

The market has finally (and rightly so) become completely over saturated with Central Bank nonsense. The game is over.

 

Avoid the five most common gold and silver mistakes.

Thu, 12/13/2012 - 06:43 | Link to Comment Glitterbug
Glitterbug's picture

Perhaps.

But the suffix should read:

It must be getting serious, they are all lying!

Thu, 12/13/2012 - 00:19 | Link to Comment tickhound
tickhound's picture

Quit the foreplay and just give the EU the Nobel Prize for Economics now.

Thu, 12/13/2012 - 01:38 | Link to Comment chump666
chump666's picture

I used to like Europe once.

Thu, 12/13/2012 - 07:46 | Link to Comment Ghordius
Ghordius's picture

let me guess: until they stopped behaving like you expected?

what are the real options? what would have you done? let all break so that the pieces can be bought for a pittance by savy ZH readers?

the game is on since Nixon 1971 (actually the EuroDollar crisis started in 1968), but go on blaming the junior players

Thu, 12/13/2012 - 07:55 | Link to Comment falak pema
falak pema's picture

I love the condescending "I used to"; like the lost age of Atlantis about to sink into the deep blue. 

Thu, 12/13/2012 - 08:13 | Link to Comment HoaX
HoaX's picture

You mean when you could still pretend we were a basket case to be laughed at?

I used to like the USA once as well. Now with your NDAA and Bernankes finger firmly pressed on the CTRL-P button, I sure prefer the European measures being taken.

How are the 50 million Americans on food stamps doing? How is the fact that if you lot used European measures to count unemployed your rate would be around 23% unemployment sound for you?

How is John Paulson losing 40bn on bets the Euro would collapse last year sound?

You lot have tried to trash the Euro for years now, and failed over and over again. Instead you managed to wreck your own economy nicely, and even the Chinese stopped buying your treasuries for well over a year now. You can say goodbye to world reserve currency status pretty soon, and then we will really see how YOUR economy is actually doing.

Thu, 12/13/2012 - 03:08 | Link to Comment Tenshin Headache
Tenshin Headache's picture

As the clown car takes another victory lap.

Thu, 12/13/2012 - 04:40 | Link to Comment smart girl
smart girl's picture

They stayed up meeting till 4:30a.m. for that?

Thu, 12/13/2012 - 04:46 | Link to Comment Joe A
Joe A's picture

Boss of the ECB is Goldman Sachs and MIT. All your assets are belong to us.

Thu, 12/13/2012 - 04:54 | Link to Comment Peterus
Peterus's picture

I would take "profit and loss" in place of "supervision and oversight" 10 times out of 10.

Thu, 12/13/2012 - 04:58 | Link to Comment Bastiat009
Bastiat009's picture

It is funny to assume that 'markets' understand anything and could react to anything. Poverty is on the rise pretty much anywhere where governments/goldman/central banks control the so-called "markets." By definition, a centrally controlled economy is not a market economy. So it may be time to stop talking about "markets."

Thu, 12/13/2012 - 05:22 | Link to Comment wildbad
wildbad's picture

..today in the news over here in zee faterland the press (and schäuble) are singing the praises of their great accord. now the ecb can "intervene" in all banks, large and small, even if it contravenes national laws. the octopus hast just slipped yet another tentacle under the mask of soverein law and come a step closer to their real goal of financial and political power concentrated in brussels.

Thu, 12/13/2012 - 05:42 | Link to Comment Anasteus
Anasteus's picture

I would like to know what this newest scam is really about. What will the supervision of the most corrupt ECB over other corrupt banks take? They do not issue the details.

Thu, 12/13/2012 - 07:14 | Link to Comment No Euros please...
No Euros please we're British's picture

I dont see it being a problem. Supervision of banks by the FSA and SEC seems to have worked pretty well in the past.

Thu, 12/13/2012 - 10:06 | Link to Comment Anasteus
Anasteus's picture

What past are you thinking of, 2008?

Thu, 12/13/2012 - 07:22 | Link to Comment falak pema
falak pema's picture

 

EU Leaders Praise ECB Supervision Agreement, Market Shrugs...

 

Pot and Kettle on the Medusa Raft. As the greek debt deal and first instalment occurs... Template of insurmountable Mount Olympus of Eurzone Club Med syndrome. 

What market, what banking consolidation, what central bank supervision? Its all hot, fiat baloney.  

The ONLY way for this to work is for the CREDITOR nations, aka China and OIL oligarchies, to KEEP buying first world debt and assets to RESET structural asymmetry in financial markets over a decade and more; aka bleed their real wealth to bolster first world phony wealth!

Now....will that happen? Will they suck the teat of first world big stick MIC and reserve currency hegemony, on oil monopoly status quo?

Will Chindia, Brazil, Russia and OIL Arabia  keep buying the debts and assets of first world "shit hit the fan" Eurozone and "fly up my reserve currency ass", USA, USA?  for DONKEYS YEARS?

Your guess is as good as mine on that conundrum! And, it won't be enuff, given the shit pile accumulated.

It will need true deleveraging of first world markets as well thru Oligarchy wealth mayhem...will they buy that?

Thu, 12/13/2012 - 06:40 | Link to Comment q99x2
q99x2's picture

Is there going to be a GrExit? Is Greece going to default? My Obamanoids are acting up this morning.

Thu, 12/13/2012 - 06:46 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

Wait did he say fundamental for financial stability or "stabeeleetee"

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