• Monetary Metals
    07/28/2014 - 02:38
    Notice the “icicles” dripping all over the place? They occur at different times of the day. What are they? Each one is a brief but dramatic price drop.

Mario Draghi's "Still Thinking About QE" ECB press Conference - Live Feed

Tyler Durden's picture




 

No change... no change. Draghi's back and, just like RBA's Stevens last night, is ready to talk (but not jawbone) his currency down; explaining that any day now we might - just might - unleash a treaty-busting monetization of more debt that won't actually reach the real economy but will provide more ammo for carry-traders to leverage longs in peripheral nations sovereign debt. Since the last ECB NIRP unleashing, things have got worse for Europe... but it will take time we are sure... just wait until H2 2014...

 

 

Why Draghi's snookered... the real costsof borrowing is practically unaffected by Draghi's actions...the transmission mechanism is broken

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Thu, 07/03/2014 - 08:49 | 4920951 Ghordius
Ghordius's picture

that's how I like Draghi: talking and still thinking. even, or particularly, if he is still thinking about QE (way better than having QE)

meanwhile, the ECB's balance sheet is shrinking. not that anybody should notice, look away

re NIRP: sorry, megabanks! unleash your lobbyists on this, if you can

re transmission mechanism: are you sure there is any willingness to borrow more? in the Spanish case, for example, the biggest hurdle is that most needed loans are in the 30'000 EUR range, by very small companies. a failure of retail banking? or just an adaptation to the Anglo American banking model, where business loans are nearly extinct and this kind of loans are seen as private/personal? I'd prefer a committment back to the old continental retail banking model, but I see little political willingness. bundling them in securitization schemes, even when "plain vanilla", does not look to me as a solution

Thu, 07/03/2014 - 09:27 | 4921121 Pinto Currency
Pinto Currency's picture

 

 

In summary, these guys are making up monetary policy on the fly. 

There is no science.

Thu, 07/03/2014 - 09:33 | 4921143 Ghordius
Ghordius's picture

on the fly? what do you think, that we found the EUR under a rock? science is a loaded word, won't go there

Thu, 07/03/2014 - 08:41 | 4920979 Last of the Mid...
Last of the Middle Class's picture

Translated: The winding down Fed told him "the checks in the mail" and Mario is saying "I haven't fucking got it yet!!!"

Thu, 07/03/2014 - 08:49 | 4921002 Jack Sheet
Jack Sheet's picture

Jim Ricktards and others may adulate Draghi as being " the only central banker who understands central banking" and "the master of saying a lot and doing nothing" but the f****r is still a Godamm Sux stooge who is stealing the savings of my family and robbing the pension funds to prop up the insolvent banks.

Thu, 07/03/2014 - 08:56 | 4921031 Ghordius
Ghordius's picture

I see you still have your cute avatar. makes it a cousin of mine

I don't care if he was one of the Squid Academy alumni. yes, the ECB is hurting savings, and the situation does not help pension funds

but do we have alternatives? left alone, the 18 currencies would all be satellites of the USD, at this point of the currency wars. or we would have had intra-european currency war devaluations, where both your savings and pension funds would have looked worse

what the heck can europe do when China and the US are fighting on the monetary level? if we had serious, normal rates, we'd have bank bankruptcies and/or a huge influx of foreign "hot money", with further destabilizing consequences. we don't live in a vacuum. the FED and the Bank of China set the tune

Thu, 07/03/2014 - 08:55 | 4921029 The Axe
The Axe's picture

They have NO Fucking mechicism to print...No way to increase M2

Thu, 07/03/2014 - 11:29 | 4921585 nope-1004
nope-1004's picture

Useless chatter box.  What does he produce to better mankind? 

 

 

 

 

 

 

Exactly!

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