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EUR Collapses As ECB 'Strawmans' Negative Rates (Again)
Given our earlier comment on the collapse of European earnings, it is perhaps unsurprisng that the CEB is throwing everything at the problem of a strong EUR:
- *ECB SAID TO WEIGH MINUS 0.1% DEPOSIT RATE IF MORE EASING NEEDED
Of course, we await the official denial but suspect this is nothing more than attempt to gauge market response to the policy idea (just as Draghi did in May). For now, EURUSD has dumped to 1.3480, and US equities are soaring...
Reaction:
Deja Vu:
- May 2, 2013: DRAGHI SAYS ECB HAS OPEN MIND ON NEGATIVE DEPOSIT RATE
And the rapid response when the reaction was seen last time:
European Central Bank Governing Council Member Ewald Nowotny told CNBC on Friday that the markets over-interpreted ECB President Mario Draghi's comments on negative deposit rates at Thursday's press conference. "Well I think the markets over-interpreted this point. Of course, there is always some kind of technical discussion about it but there is no specific plan in that direction," Nowotny said in Bratislava. "I personally think this is something where one really has to analyze very carefully the effects, side effects, psychological effects so this is not something that is of relevance in the immediate future."
But Nowotny said this was a "very sensitive issue" that would need "much more information, much more analysis than we have available at this moment." He warned it could in fact dry up the flow of credit. "This is one of the possible outcomes," he said.
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ECB not CEB, brother.
That will be corrected in a later version.
Testing the public's sentiment for a Cyprus style bail-in. Draghi was floating a trial balloon. Everything he says is meticulously choreographed prior to release.
They'll need the bail-in that much sooner with negative rates. People may use European banks as a matter of convenience or stupidity, but paying Mario to "watch" your deposits is into the realm of clinical brain death.
Why you, you... Conspiracy Theorist!
Now it's time for Deep Thoughts, with Fast and Furious, and Eric Holder at the DOJ
Here come all the angry villagers with their pitch forks!!
Until these bankers are prosecuted...it would appear THEY WILL NOT STOP!
Then again...looking at ALL price action today...this reads like chapter 8 in The Anatomy of Collapse.
Thank you, Ben Bernanke and Mario Draghi...for this economic wasteland you have made for us. We all really appreciate it.
Never over-interpret the greed and avarice of a Bankster.
... and never under-estimate them either.
How many chapters are there? I'd like to just skip to the end, please.
THAT FX STUFF IS LIKE GUESSING HOW MANY JELLYBEANS ARE IN THE JAR IF YOU DON'T KNOW HOW BIG THE JAR IS AND WHO ALREADY TOOK OUT A HAND OF BEANS!
YOU KNOW WHAT I'M MEANING?!
Well...based on trading in the SPY as today's rumor of negative rates broke...someone did guess at the number of jelly beans in the SPY jar...and massively sold it short.
how fast would banks collapse if people have to pay to deposit their money? weeks....days....hours...???
don't give people to much slack...
they would only believe it after the second deduction from their account that questions would be raised...
It's almost like they are trying to make Bitcoin (or something like it) look like a better option ? I wonder ?
A look alike would make sense. And just imagine the power they would have if they controlled something like it.
It will never be bitcoin, it would need to be theirs.
But cashless is the dream. Like in Korea the octopus system.
With an all-electronic currency, any negative rate becomes possible.
Yea and that's not at all inflationary.
Gold and Silver Bitchez!
(nobody's said it for a while, felt like it was time)
It amazes me that people still continue to keep currency in the banking system.
It amazes me too. I guess it's because most have been brainwashed their full life that currency = money... Maybe Mike Mahoney's video's will convince some but I don't see any change in attitude towards fiat around me. Be happy and take advantage of the low price for real money.
What exactly is a negative deposit rate (simple definition)? Should I think of it as a 'tax on money'?
The banks charge you to hold your funny money. They would start small like .25% then make it more painful until people start spending. It will never happen, because this would eventually cause a run, and alternative currencies would be looked at.
bank deposit box is cheaper than -0.1% on deposit account
still negative...have to rent plus inflation.....whats a saver to do.....that djia is looking pretty pretty good....or hard assets and wait...hmmmm what ta do what ta do....and this is rehtorical...
They are talking about overnight deposits at the ECB, so the banks will lend each other instead of putting it at the ECB. Please...
Go long safe and vault makers.
Desperate men do desperate things.....
Lol,
Can I get leverage with my negative rates?
Pods.
Sure. Some 32x short ETFs with funny underlying secutities are under construction. Ask your local bank and BTFATH very soon!
Correct me if I'm wrong folks, but this negative interest rate thing isn't going to happen (Thank you, Dr. Engali), and this little bomb dropped by Bloomberg is nothing more than a shot in the new currency war?
-0.1%? Time to deposit that fiat in Bank of Sealy & Simmons.
Affordable private banking, with no fees, disclosures or haircuts. Seizure odds on par with regular banks.
It's 'negative rate day' across the board as FED also says it's warming up to a nice negative rate too! Fuckin BANANAS!
<-- as a kid I stacked lego blocks
<-- as an adult I stack gold bullion
0.6 cents is far from a collapse.
If anyone thinks I am putting money in a bank to get even less out (disregarding for the moment that after inflation the purchasing power is less anway) they must be joking
To risk it being stolen by the very bank robbers as well? To ask me to pay for that risk as well?
Watch money head for the mattress.......and think of how that will affect the bank's balance sheets..
Switzerland tried negative interest rates in 1972, when a penalty charge of 2% per quarter was levied on the increase in CHF deposits from non-residents.
http://snbchf.snbchfcom.netdna-cdn.com/wp-content/uploads/2012/10/JP-Mor...
More recently, Denmark did it too, and the SNB threatened to reiterate.
http://www.bloomberg.com/news/2013-06-16/snb-threat-of-negative-rates-se...
Contagion of Larry MoHarvard ... Goldman-am-Main parroting the summerish ecocannibalistic wisdom ...
EU savers hit by the Killer Rabbit: "run away, run away". Only the HolyMonty Python hand grenade will do.
Fuck the top 10 banks and stop doing business with them. Withdraw your funds and move to a credit union, or physical.