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ECB Unleashes (Covered) Bond Buying Program, Sovereigns Sell Off
Draghi, we have a problem. Just as Coeure 'promised' the ECB, according to The FT, began its bond-buying program this morning. However, peripheral sovereign bond-buying front-runners banking on the ECB greater fool to offload to are disappointed as they are go no easy money love. The initial program is covered-bond-buying (similar to US MBS, but a considerably smaller market) and the ECB will reveal how much it has bought each Monday afternoon (starting next week). Greek bonds are suffering the most with 5Y yields at cycle highs once again and prices at lows (vanquishing all of Friday's gains).
The European Central Bank has started to buy covered bonds, launching its latest attempt to stave off a vicious bout of economic stagnation in the eurozone.
The purchases are the first in a bond-buying programme that is expected to see the ECB place billions of euros of covered bonds and asset-backed securities on its balance sheet over the next two years in an attempt to revive lending and growth across the region.
The ECB confirmed that the central bank had begun purchasing the assets on Monday. The purchases of asset-backed securities are expected to start later this year.
The central bank will reveal how much it has bought every Monday afternoon, starting next week.
And the disappointed sovereign front-runners continue to sell...
and 20 mins later...
As Greece implodes back to higher yields and lower bond prices...
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None of this should be a surprise - remember what happened the last time the ECB bought sovereign bonds...
Charts: Bloomberg
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This is such a shitty idea.
Well we ran out of good ones so shitty is all we have left.
Germany calling....make it quick and as quiet as possible. Our domestic politics are not supportive, although a quick bit of 'Stimulus" may be needed right now to keep the Americans happy with Russian sanctions. Clowns and circuses??
And the Germans went along with it....... made a little noise to get the headlines, and then just bent their people over....... to take it Greek (spain portugal italy and france) style....
The Germans deal with shit differently than everyone else does.
See, the French, Spanish, Italian, etc., etc., riot and protest over small shit constantly, but never really do anything about it until one day the system just breaks and some people get either hung or decapitated. That is to say -- you can only push the Latins so far until the system breaks.
The Germans (and Austrians) on the other hand -- you can push us around for quite a while. Our conformist culture tells us to deal with it, and to not get out of line. The Chinese saying "the nail that sticks out is quickly hammered down" applies very well up here.
The difference between the Latins -- who don't like getting pushed around is that when the Latins do eventually reach a breaking point -- it is much earlier on in the process than the Germans do, thus, the international externalities of a Latin based rebelion is fairly minimal. Because the Germans will get bent over and take it in the rear a lot longer than everyone else -- when they/we eventually do reach our breaking point -- shit hits the fan in all directions, and it normally ends with a large war.
I hope this time is different.
Bundesbank ok this program? I bet right now Merkel is recieving some angry phone calls.
I'm sure she dosnt care. how many angry calls has Obumer recieved and made no differance. they will print thier bogus paper untill they run out of trees oh ha no paper needed so type away and go back to sleep.
in all seriousness untill the people force change in the millions. they won't stop doing anything that will allow them to keep up the sick lifestyles they have stolen. the Owls need to be worshiped
The great O doesn't take calls, they interfere with his golf game....
I thought this plan would begin once QE ended just so the stock market would have more performance distractions. Another gimmick that will help them bide their time until the inevitable market implosion.
Merkel has apparently given it up. She has finally understood the real economy has little to do with keynesian insanity she is integral part of. She eventually understood that snow balls cannot be baked.
On the other hand there was perhaps nobody interested in her opinion anymore.
Guess ya never heard of "Baked Alaska" or "Fried Ice Cream!"
BOND GAMES DEFINED:recycled bonds same as recycled ass wipe, gets shity"er" with each new round.
got shit on your hands?
Or maybe in your mouth, that was the end game right?
Asset-backed securities? Yeah, right!
"Credit Default Swaps" and "Mortgage Backed Securities" = South Sea Company Shares and Black Tulips.
Funny how Central banks don't even bother talking about growth and industry investment in R&D and Capex, all we talk about is providing them cheap money through banks who don't lend it out because the risk of doing so for them being capital weak is too high.
A Central Bank buying bonds is no different than paying someone's mortgage.
We won't be to the core of the truth until that is what is done.
That, and I get my check for $4 Million from the FED.
They have enough candy bar wrappers for collateral?
European PPT in action:
http://i.gyazo.com/7be474c4f002a1a154bb4ba85b4c6c92.png
and Ezekiel 25:17 before
http://i.gyazo.com/ee4e4f81a37cf6b1ac3f579a6230a020.png
Italy closer to the ECB trap
http://failedevolution.blogspot.gr/2014/09/italy-closer-to-ecb-trap.html
Greek-bonds
Oxy-moron
G-S-humour
R-O-F-L
V for Vendetta, or beam me up. Had ENOUGH!
Best wishes to all.