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ECB Tumbles On More Draghi Verbal Intervention

Submitted by Tyler Durden on 05/06/2013 10:34 -0400

Moments ago, Draghi made sure all the downside stops in the EURUSD were taken out when out of the blue, during a discussion following prepared remarks at LUISS, he confirmed what the ECB said last week: namely that the 25 bps cut is just the beginning.

DRAGHI SAYS ECB ARE TO EXAMINE EU DATA IN THE NEXT WEEKS AND IS READY TO ACT AGAIN
ECB READY TO ACT AGAIN IF NEEDED, DRAGHI SAYS
ECB MONETARY POLICY IS TO REMAIN ACCOMMODATIVE

This follows his earlier comments that the ECB can't subsidize government through buying bonds (only through trillions repo equivalents apparently), which means more whispers of a negative deposit rate are coming to a rumormonger near you.

The EURUSD reaction was instantaneous:

What is more surprising is that so far the "bad news is good news" algo hasn't woken up and sent the DJIA back over 15,000. After all this is just the bad news the market needed to price in even more easing from the ECB which will do nothing at all for the 60% youth unemployment in the periphery and everything for the 1%.

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Mon, 05/06/2013 - 10:36 | 3534137 88888

Stop reading this post and go buy more Spoos. All is fixed

Mon, 05/06/2013 - 17:04 | 3535434 Catflappo

The ECB tumbling? Wow, that is serious.... will surely take the Euro with it

Mon, 05/06/2013 - 10:36 | 3534139 Cognitive Dissonance

How low can you go?

<Below the water's surface into negative territory.....bitches.>

Mon, 05/06/2013 - 10:59 | 3534199 Non Passaran

Draghi to Benny: I bench 25 negative basis points. How much do YOU bench?

Mon, 05/06/2013 - 11:02 | 3534211 Manthong

a basis point here.. a basis point there..

pretty soon you are talking real money, right?

Mon, 05/06/2013 - 11:34 | 3534277 THE DORK OF CORK

But it is not real (fiat) money.

Its just all double entry crap on mainly worthless assets which act as a conduit for wealth extraction.

Mon, 05/06/2013 - 10:37 | 3534143 Fips_OnTheSpot

*KATAINEN SAYS SMALL COMPANY LENDING `COULD BE ROLE FOR ECB'
*THORNING-SCHMIDT SAYS ECB MAY HAVE PART TO PLAY IN SME LENDING

and next free personal "accounts" at ECB for any EUR-slave. Kick out banking sector.

YAY.

</sarc>

Mon, 05/06/2013 - 10:45 | 3534168 css1971

Screw SMEs. Lend to me at 0.5%. Why should governments get all the cheap money?

Mon, 05/06/2013 - 10:57 | 3534197 Non Passaran

The way things are going Europeans will soon use be able to buy PMs on credit and then still make money by lending the same metal (to central banks, if they dare!)

Mon, 05/06/2013 - 11:29 | 3534263 fajensen

Every thing Helle Thorning-Schmidt touches turns into shit - The Inverse King Midas Syndrome!

Mon, 05/06/2013 - 10:41 | 3534154 Quinvarius

They need to take over all the companies so they can use company profits to buy bonds. Haha. Seriously. As stupid and unworkable as that is for an economy, that is what Socialism is all about. They are going to do it eventually.

Mon, 05/06/2013 - 10:50 | 3534177 Baader

Rearrange to suitable sentence...

Swing
Rope
Lamp post
Draghi

Mon, 05/06/2013 - 10:50 | 3534181 firstdivision

Draghi pissing in Ben's cereal this morning.

Mon, 05/06/2013 - 10:50 | 3534182 caimen garou

anyone suprised by this bullshit? more to follow!

Mon, 05/06/2013 - 10:52 | 3534183 caimen garou

bullshit that is.........

Mon, 05/06/2013 - 10:57 | 3534196 pods

Competitive Devaluation.

Plan A,B,C,D and E.

pods

Mon, 05/06/2013 - 11:03 | 3534207 CheapBastard

How do you say 'ZIRP' in European?

What happens when all CBs are at zero rate?

Mon, 05/06/2013 - 11:01 | 3534208 Racer

So he wants people to pay to put money in a bank so they can have it stolen from them?

*Scratches head furiously*

Mon, 05/06/2013 - 11:05 | 3534214 JustObserving

Why are gold and silver not surging on the news that thE ECB may loosen further? The river of easy money is becoming a torrent.

Manipulated markets never make sense.

Mon, 05/06/2013 - 11:07 | 3534215 Quinvarius

How can anyone take this digital/paper currency nonsense seriously when one crackpot can make a comment and change it's worth? Garbage like this is why the economy can never recover. How can anyone hedge business risk when some idiot can eat up your whole export/import profit margin in a millisecond? LOL.

I get the distinct feeling that I will be buying my buckskin pants from a local leatherworking craftsman with PMs and squirrel meat in the near future.

Mon, 05/06/2013 - 11:07 | 3534220 Balanced Integer

Meanwhile, the European Commission looks longingly towards Obama, jealous that they cannot also blame Bush for their faultering clusterfuck of an economy.

Mon, 05/06/2013 - 11:08 | 3534221 CheapBastard

Euro zone business downturn points to deeper recession in second-quarter: PMI--Reuters

http://news.yahoo.com/euro-zone-business-downturn-points-deeper-recessio...

Mon, 05/06/2013 - 11:51 | 3534310 Meat Hammer

I'm imagining what would happen if he said the economy seems to be improving so the ECB is going to do nothing. It would be ugly.....good news would be disastrous.

It's 8:50 a.m. I need a drink.

Mon, 05/06/2013 - 12:02 | 3534335 THE DORK OF CORK

DRAGHI worst nightmare ?

http://www.youtube.com/watch?v=u3swbAeQlqc&feature=player_embedded

French politicans who want to return to the Franc and also give Hollande a pair of glasses so as to see what he is doing to the country in the interests of the high elite.

Mon, 05/06/2013 - 12:48 | 3534494 W T F II

"Le Swan Tricoleur"...

Mon, 05/06/2013 - 16:30 | 3535316 jonytk

Europeans are starting to devaluate, first time in years that they really print money, guess who will follow if the USD skyrockets...

Mon, 05/06/2013 - 19:53 | 3535911 monad

MOC Euro was designed to fail

ECB Tumbles On More Draghi Verbal Intervention

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