ECB Tumbles On More Draghi Verbal Intervention

Tyler Durden's picture

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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88888's picture

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

Catflappo's picture

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

Cognitive Dissonance's picture

How low can you go?

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

Non Passaran's picture

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

Manthong's picture

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

pretty soon you are talking real money, right?

THE DORK OF CORK's picture

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.

Fips_OnTheSpot's picture

*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>

css1971's picture

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

Non Passaran's picture

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!)

fajensen's picture

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

Quinvarius's picture

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.

Baader's picture

Rearrange to suitable sentence...

Swing
Rope
Lamp post
Draghi

firstdivision's picture

Draghi pissing in Ben's cereal this morning.

caimen garou's picture

anyone suprised by this bullshit? more to follow!

pods's picture

Competitive Devaluation.

Plan A,B,C,D and E.

pods

CheapBastard's picture

How do you say 'ZIRP' in European?

 

What happens when all CBs are at zero rate?

Racer's picture

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

*Scratches head furiously*

JustObserving's picture

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.

Quinvarius's picture

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.

Balanced Integer's picture

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

CheapBastard's picture
Euro zone business downturn points to deeper recession in second-quarter: PMI--Reuters

 

 

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

Meat Hammer's picture

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.

THE DORK OF CORK's picture

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.

jonytk's picture

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