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In Stunning Move, ECB Cuts Rates By 25 bps, Euro Plunges
Perhaps it is not surprising that with the absolute majority of economists and strategists, or 67 of 70, predicting no rate cut by the ECB, this is exactly what the ECB just did, when in a stunning move it cute rates for both the main refi rate and the marginal lending facility by 25 bps, to 0.25% and 0.75% respectively. And there is your reaction to Europe's encroaching deflation.
At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:
The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 0.25%, starting from the operation to be settled on 13 November 2013.
The interest rate on the marginal lending facility will be decreased by 25 basis points to 0.75%, with effect from 13 November 2013.
The interest rate on the deposit facility will remain unchanged at 0.00%.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.
The Euro will need a bigger chart to show just how far it tumbled as a result of the stunner:
But... But... that MNI source yesterday said...
And now, tune back in in 40 minutes for Draghi's press conference.
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Cuz things are so fucking good in Europe right now...
Thought for sure we'd see an in your face rate hike!
...on another note, this is mana from heaven for the Twitter IPO. BTFATH, bitchez. I'm sure this will end well.
just imagine twitter adds 10 more advertisings per tweet... BILLIONS!! TRILLIONS!!!
Does twitter management have a facebook page we can visit to followup on the progress?
The ECB is extremely jealous of all the USA's numerous bubbles ... so it wants to join the bubble-party.
Bubbles EVERYWHERE!
Take a real bath in these bubbles - an acid wash, and it ain't orange barrel.
Euro was getting too strong for the German's liking....
fine by me, just saved me $40k on a deal I am working on with some Germans right now :) Glad I didn't lock in those euros yesterday
At 0.25%, the ECB has reached the lower limit of its rate cutting ability.
yeah. if you hear a strange sound: that's me hitting my head against my desk. so damn unnecessary, that move
BECAUSE IT'S A RECOVERY YOU CAN BELIEVE IN!!!
just ignore the all time high bankruptcy numbers from oktober.... that's just survival of the fitest...
End of austerity? That would be good news IMO
Let me guess, Gartman is long Bitcoin in Euros?
Dude.....knock it off. He's gonna slam his tray on table and leave if you keep it up.
#Dolphin_gurus_with_thin_skins
EU is an utter mess. ECB just proved it
Fear changes everything in ECB headquarters:
Mario in the Mist:
http://youtu.be/cktU2ovY8_0
WHOEHAHAHAHAHAHA!!
SO PREDICTABLE!!!
The streets hear it won't and the insiders will have had the other memo also a few days ago!
HAHAHAHAHAHA
European stocks broke new highs on a strong euro. imagine what they will do with a weaker euro.
5 years of printing money and rate cuts and gold just sits there. wow.
Golds not sitting there its moving into strong hands at bargain prices to keep the impression this shit is ok.
It's pretty fucken far from ok.
Do you still think bankers will end up with the over 1k p/oz miners after the last push down in December? Sub 1150??? What else can they do? Let it go up.
Or maybe change view from minute to daily? And it looks like any other day... I don'know..
Go bitcoin! http://www.finviz.com/forex_charts.ashx?t=EURUSD&tf=d1
Over.
no cut sent stocks higher. cut sends stocks even higherer. makes sense in a ponzi world
Now its official, everyone is backed against a wall.
Here's a good one...
"ECB Cuts Rates Unexpectedly as Low Inflation Threatens Recovery
By Christopher Lawton FRANKFURT--The European Central Bank unexpectedly cut its main interest rate to a fresh record low close to zero, reflecting heightened worries in Europe that dangerously low inflation threatens the region's tepid economic recovery."
Dangerously low inflation???!! WTF, they are scared sh!tless, it isn't the people who are worried about low inflation, it is the bwanksters...
I guess in a couple years we can all pat ourselves on the back for predicting how this is going to turn out. No joy in being right in some cases. Foolish central bankers. You can't borrow your way to prosperity. I think my dad told me this when I was maybe 10 or 12. I now understand why he was so cynical of politics, politicians and central bankers.
growth = inflation. right? low inflation = x ......you can solve this logically for x.
I seriously doubt that the banksters are scared shitless. In fact they are on track to consolidate power and are taking over the word lock stock and barrel.
The CNBC headline says European stocks sharply higher *ahead* of ECB decision. They seem to have an odd concept of time.
Edit: Looks like someone had a little talk with someone else. The headline now reads: "
Europe stocks surge after ECB rate cut"What happens if central banks introduce negative interest rates? Will customers have to pay banks interest for depositing their own money?
They already do by putting money in a bank that pays little or no interest you get less out in purchasing power because of inflation... yeah real inflation not just pretend made up figures stuff
I seem to recall someone on this forum claiming that this (viz., charging depositors for safeguarding their money) was actually being done in (?) Switzerland (?) some time back. Maybe eight or ten months ago?
Or you can get 'Cyprus'd' as a banking 'fee.'
Bank fees have exceeded interest paid on my bank accounts for over 20 years. Yes, I would like to meet a boss who pays cash. Sadly, I still haven't quite figured out how to create customers.
Oh yeah, around that time the govt privatized the state banks, deregulated the banking industry and told us "more competition will make banking cheaper." Guess I should have borrowed lots of money so I could have "cheaper" banking.
Fucking weasel Mario just fucked the bond and FX markets. That'll make a lot of guys happy today. Anything to preserve the precious DAX.
Rodents of unusual size? I don't believe they exist *CHOMP*
Yeah, the vermin are about to eat the cat.
Stunning - Why? Sending a signal, otherwise fairly meaningless as regards real economy, credit etc. Draghi will now simply stress downward risk, and tell us that he will be prepared to use all available tools (left).
It did not take a rocket scientist to see that Europe had not turned a corner, and that deflation is set to cripple the periphery.
Cash is trash....take out a loan today...dont pay it back tomorrow
How original.
Proves how the CBs have basically run out of ideas when the only thing they can do is to cut rates, again. But this time it's meaningless, 50 to 25 basis points.
Give it 6 months and they'll probably wonder why nothing has changed in the economy because of the rate cut. But fear not, the committee wil come up with another bankrupt idea - cut them to zero...
Germany and France oughta' just opt-out before they're utterly destitute. Tell Draghi and the boys to take a hike.
The people will get fatter if I eat more chocolate.
Why don't they want to eat the chocolate after I have finished eating it?
I expect another round of OMT within 6 months from now. The ECB is basically copying the Fed with a few months latency, in the end it all comes down to ZIRP and print, print, print. Anyone still not convinced this system is on its last legs? That we're all going to 'grow the economy out of this mess'?
*SHORT GERMANY 9150
Target 7400
muppet milking 101 day by day, 24/365.
Do they allow muppets 100:1 leverage in f/x markets, or do you have to a bitch bankster to get shafted like that?
Finally. The farce hits the fan.
yup, these are your investor markets.
the dax for example went from up 15 to up 90 before you could blink.
dow futures went from -1 to up 50 before you can blink.
yup, these are your free investor markets.
things are so great in europe and the u.s, if u dont believe me, listen to jim cramer, he is always right and knows exactly what he is talking about.
i hope mario draghi is killed, that guy is the definition of a fucking prick douchebag.
someone take this asshole out, and then go to bernanke.
thismarketisrigged:
Hear that knocking on your door? It's DHS wanting to talk to you about your "threats" to murder Draghi and Bernanke.
Are you not aware that the NSA reaqds this blog in real time - and is doing this to protect us from "terrorists" like you . . . ?
Now, get your guns out of the house before they break down the door.
And don't ask to see a Search Warrant - they are the law. Just ask the Secret Court who issued a Secret Warrant in a Secret Session citing Secret Rulings to Secret US Attorneys who direct the Secret Police wearing masks and other "you can't identify me" combat clothing and body armor.
Like Obama said, he's "going to put the fear of God" into all of us.
And you can be assured that the White African-American psycho sociopath and pathological liar means it.
-30-
Gold just did something weird, like a flash hardon or something. Coming back down.
It appears our dear cousins on the Continent have just "mixed it up" as they say. Looks like Dahgi just put his member in an energized light socket. All of Euroland just lit up. We are stumbling into intersting times.
Now how would a sweet young lady such as yerself know anything about hardons? :>D
She packs heat. I'd be a bit more demure if I was you.
it is because dollar is getting stronger against euro
Oh! So THAT's why Bitcoin launched to 321 this AM. Haha. Gotta love dem Ur-O-peons.
Did it launch before or after the ECB announcement? If before, well, then, we've found a way to truly keep insider trading off the books, haven't we?
Prior, from Midnight till about 4 AM EST. It's obvious that Dohgy is desperate, which also informs the recent disclosure about a pan-euro "wealth tax ... but only this once (honest)". And I can see that some people had info before the announcement, so yes a smart move to GET THE HELL OUT of fiat.
Who cares about a .25% at this point, as if this is a real game changer. That should get European employment moving!! You just have to laugh at how desperate THE CENTRAL BANK has become. Shit they couldn't even tapper 10 billion here, even though we're in the fifth year of recovery. At this point at least we know they know we are getting closer to the end of this charade.
I'm sure there are some bankers who actually do care: PROFIT = spread x leverage. The cost basis part of the spread just had a huge relative reduction.
Mo' Freer Money, Break out the Bollinger.
Using central bankers to fix a fiscal crisis is like using noodles to build a dam.
currency wars...now it is the US turn....ya see things aren't that great out there and the central planners know it....I expect QE EXPANSION not RETRACTION
BINGO! We have a winner!
Race to the bottom and it's the US' turn!
Of course QE expansion... it's just math. Debt money loaned into existence requires a never-ending expansion of debt. It's the only way for creditors to receive both principle and interest. QE was never meant to be temporary. It can't be. End it and you end the current monetary system.
ooo geez two whole cents. Bad news for traders holding the bag on the wrong direction, but not exactly time to run for a european vacation.
Exactly. I'll pack my bags when I see 1.20 or below.
These volatile moves is why bitcoin isn't a viable currency.... Oh wait
Because the stock market is everything!
srsly...I thought you were cool ECB.
All the central banker "surprises" (e.g. September's non-taper) are all to the side of MOAR, which is really no surprise at all.
The one thing I am amazed to have learned since I have been coming to ZH , is how afraid they are of DEFLATION
Deflation would be like turning on a fan in front of the house of cards they've built...
WTF? Gold and silver now down on this news of massive easing? Everything is manipulated beyond one's belief.
Wonder who the net buyers of physical will be today? String pullers are discernible if you look in the right places.
Agreed, manipulation is so obvious an idiot at the CFTC could point it out (if he chose to).
Gold is denoted in $. Have a look at gold in €. That's how I buy it and it's just gone up in price.
Gold is still in the bargain bin at sub 1k €. Fine by me. I'm stacking.
Gold immediately cock-blcoked by *someone*....
....Gee. I *wonder* who that could be? The shenanigans are strong today...and that's saying something.
damn they don't even try to hide it anymore just slam right at the ny open. if you look at the pattern, gold gets slammed down then it creeps up and gets slammed down again. you almost never see a downward trend in the spot price just sideways or up then slam! wow...
people should create free government independent market 24/7 similar to the idea of Bitcoin
where HFT and all the other disadvantage to regular investors would be disallow
people should create free government independent market 24/7 similar to the idea of Bitcoin
where HFT and all the other disadvantage to regular investors would be disallow
The choice between paper and gold is becoming a no brainer.
A bigger chart- or you could adjust the increment of the scale on the y-axis to more than 5/100 of a penny.
I thought Spain just showed some industrial production....guess not
so dow deff reaches 16,000 today, right?
fucking joke, just laugh
http://www.safehaven.com/article/31717/the-ecbs-tough-balancing-act-bubbles-vs-deflation
Today, a small group of central bank chiefs can meet in private and wield unprecedented power over global markets, economies, and wealth distribution. They are held accountable to the ruling politicians that in most cases have no respect for the principle of sound money. Instead, in Europe, the UK, Japan, the US, and elsewhere, central bankers have become intricately linked to monetizing government debts, and financing the expansion of the welfare state. As such, disciplined and independent central banking, a cornerstone to any hope for sound money and credit, has been relegated to the dustbin of history.
Central banking, - ostensibly designed to combat high levels of inflation and promote economic growth, while overseeing the stability of the banking industry, has instead, morphed into technocratic planning boards that are constantly involved in rigging the value of the financial markets. Their principal modus of operandi is to encourage risk taking in the local stock markets, through massive injections of ultra-cheap liquidity. However, the result isn't better economic conditions, but rather the expansion of massive bubbles in various financial markets. In turn, central bankers have widened the wealth gap between the owners of equities, and the rest of the struggling population whose wages are sliding backwards, and is increasingly seeking out assistance through welfare programs.
Historically, the value of the stock market reflected the dynamics of the local economy, and would influence the social mood of the populace. A stock market that is booming would signal an up-and-coming economy that would be followed by increased business investment and the creation of good paying jobs. Rising share prices boost the fortunes of about 10% of households in the country, and triggers a greater propensity to spend for goods and services - otherwise known as the "trickle down" effect. Therefore, keeping a constant vigil on the behavior of the stock market, - has become the raison d'être of central banks.
In earlier times, stocks traded on the local stock exchange used to track or even anticipate the nation's business cycle. But that reliable role as a leading indicator began to seriously break down after the financial crisis of 2008. Since then, because of the hallucinogenic effects of "quantitative easing" (QE), - stock markets are no longer reflections of the health of the local economies or forecasting mechanisms of the business cycles. Instead, they are just slices of ownership in specific companies that are unreliable gauges of anything but the underlying strength of the companies they represent, their dividend payments and buybacks, and the schizophrenic mind-set of the traders who buy and sell the shares.
GS is doing everything they can to ensure a FATH market on their big IPO day. It would be bad for business of Twitter Day was a down day in the markets. Herd those muppets.
Its a bad day for the Czechs to start playing with their money
yeah, no shit
All shenanigans to make closing down the repo line with the US CB less troublesome?
Interesting action so far. ECB rate cut causes Euro stocks and gold to rise sharply followed by PM smack down. The rise in gold was logical and Euro stocks held the gains. I guess our friends got worried, though, and couldn't let this signal from PM to be seen. Stocks rising is different, of course, sends the "right" message.
Once upon a time, the market reacted negatively when the EUR/USD cratered like this. Once upon a time, bad news was bad and good news was good.
Wow.....so yesterdays 'no rate cut' news was massively bullish....and todays 'rate cut' is equally bullish?
Sure am glad I became a 'spectator only' a while back and cashed out of everything....there's no calling this shit any longer.
Who is surprised?