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ECB Remains All Talk, No Action: Leaves All Rates Unchanged
All talk, no action. That's what, as usual, happened at the ECB today where after much bluster and QE rhetoric from everyone including former permahawk Jens Weidmann, the ECB did precisely as most had expected. Nothing.
Monetary policy decisions
At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.25%, 0.75% and 0.00% respectively.
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.
As for that rapidly deteriorating inflation chart in Europe, don't worry. It will fix itself.
As will Europe's non existant private sector loan creation.
Because quite frankly, the actual economy doesn't matter as long as Greece can issue bonds at the same rate it did a decade ago, but only with 20% more unemployment.
Expect even more nothing from Draghi at the press conference next at 8:30 am.
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Fuck you Mario.
Gotta hand it to him....he fooled me.
http://www.youtube.com/watch?v=srw3RdiIlrQ
People believe what they want to believe.
rigged
Are we really going to go there?
Ha ha.
It's a banker's life, for us! It's a banker's life for us!
Steady treated, we get tricked, Steady kisses, we get kicked!
Nothing will happen until Germany feels the pain.
They let Lehman go bankrupt in a soft economy, if Lehman can go bankrupt, anyone can in this hard economy.
Not even then.
Ready for the gold smack down set to begin in 15 mins? (i.e. 8:17am)
Hey!!! I was looking for that show...bummer, now wasted it for me :(
RALLY!!!!
CLEARLY NO REASON WHY THE MORONS SHOULDN'T BUY MORE STOCK!!!
THERE'S SIMPLY NOTHING ANYBODY CAN SEE COMMING!
DONT TRUST GS WHEN YOU MAKE TRADING DECISIONS LOL
The moves or rather non-moves by the ECB are not unexpected or surprising. Here is a bank that is built of multiple constituencies, i.e. the Central Banks of the Eurozone countries (with the Germans having the biggest say) all pulling in different directions that it is totally ineffectove. I agree with someone earlier, until Germany starts to feel the pain, the ECB is not going to do anything. Also, given the character of the Europeans, the status quo is to do nothing anyway. They are working off a wing and a prayer and are all incapable of sorting out their problems. That is why until now, we have been served up a veritable feast of bulls***t from Mario, and this will continue.
So what do you expect the ECB to do, which you think will happen when the Germans feel the pain? Buy sovereign debt? Make interest rates negative?
Central Bankers are not magicians. They can't create economic growth. Economic growth is created by investment, production and consumption, all activities outside of the Central Bank. They can affect the cost of borrowing for investment by making the interest rates low, but if there are no investments forthcoing at the current rates, there isn't anything else the Central Banker can do.
Surely all the new government regulations will foster growth .... my bank is hiring ... two new compliance guys sitting right behind me!
LOL! Yes, the government increase employment in the banking sector by increasing bank regulation.