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ECB Bought Just EUR1.7 Billion Covered-Bonds Last Week
According to an ECB-leaked spreadsheet (now confirmed), the impotent omnipotent central bank bought a mere EUR1.7 billion of covered bonds last week (which was largely expected) according to Bloomberg. This somewhat inglorious start to the ECB's efforts to engorge its balance by another trillion or so is supported by precedent as it has been the sovereign purchase programs that made the big difference in the past. Under pressure to "front-load the purchases" as one analyst notes, the results from last week suggest, as we have warned, there simply is not enough quality unencumbered assets lying around in Europe to make a dent in the ECB's efforts to greatly rotate taxpayer-backed free money on to bank balance sheets.
- *ECB SAYS EU1.7 BLN OF COVERED-BOND PURCHASES SETTLED LAST WEEK
The ECB’s two previous rounds of covered-bond buying started slowly and gradually increased in size. That’s in contrast to the larger acquisitions of government securities made under its now-defunct Securities Market Program, which topped out in the first week of each round.
Another component of the new stimulus plan, the buying of asset-backed securities, will also commence this quarter as the ECB seeks to fend off deflation by boosting the amount of money available for banks to lend to households and businesses.
“Given the economic situation, the ECB needs to do something and there will be pressure to buy in big amounts and front-load the purchases,” said Ruben van Leeuwen, an analyst at Rabobank in Utrecht, the Netherlands. “At the beginning it’s easier to perform well, but later it will be hard to buy bonds as there will be less around and the market will be less liquid.”
* * *
It seems at just EUR 1.7bn, it was neither easy nor liquid to give the ECB money away.
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220...221...whatever it takes.
In case they dont get it ....
https://www.youtube.com/watch?v=iX3kxAA2L4Q
Isn't it 240, 241 over there? Anyway there is a whole lot of rot under the wet blankets of bureaucratized central planning over there. New mechanisms of pretension to civilisation will need invention.
Further destorying their own paper. How does Germany feel about all this?
That's all that matters.
Everyone is Japan, but nothing changes until essential goods and services can't be delivered. Could be a while.
Germany doesn't like it. But if you think ANY nation in the EU is going to finally "stand up" to these guys, you're probably in for a big disappointment.
You vastly underestimate what the Euro means for the Europeans, for the Euro area. You vastly underestimate the amount of political capital that has been invested in the Euro. And so you keep on asking questions like: If the Euro breaks down...and if a country leaves the Euro...? It's not like a sliding door. It's a very important thing. It's a project in the European Union.
sure, as countries within the E.Z. continue to break the "laws" for remaining in the E.U.
Like I have said time and time again, there will be "official" prices, money, and info and then there will be the actual prices and money that people on the street are using...
interesting times. Opportunities in any case.
"You vastly underestimate what the Euro means for the Europeans,"
So?
Basically, eurozone is 17 homeless people and warren buffet.
who cares if 17 think "free" money is good?
What does the euro mean for this euro roboten Dork ?
A demonic attempt at further economic centralization via a exponential extraction of my basic purchasing power.
Just one of the capital projects in France is bigger then the Channel tunnel.
Its very much the new Egypt , it most certainly does not belong to me.
https://www.youtube.com/watch?v=nohO7pq9leU&list=UU32VR9OmxWwFPh7w-hbrxFg
The euro is the ultimate capitalist experiment.
Moreover, if they still believe anything at all over there they believe in the state and central planning, and so will choose to suffer incrementally more at every decision point rather than lance and drain the boils, until the corpse is irrecoverably walking dead doomed.
This was Draghi's response to a ZH question a year or so ago.
If anyone could get me into a Press Confrence with Draghi -- I could get him to do one of three things;
1) Say something so ridiculous -- no one -- not even the Ghordo could believe him.
2) Pop the PIIGS bond bubble
3) Stammar a bit, realize I just fucked him publically, and try to avoid the question and then ignore him as I pester him, eventually getting myself thrown out.
Anyone with a Press Pass in Frankfurt want to see a fireworks show?
1) in my humble defense: I usually advocate looking what he does, not what he says.
2) question is: how do the national bank governors in the ECB council feel about your bond bubble popping exercise? how do the national parliaments behind them feel about that?
realize this: American pressure on Europe exists, both in political and megabank form. what is the Holy Grail of Uncle Sam? The US Stock Market
as long as this pressure is there, you'll have Silvertongue or a reasonable "Ersatz" like him saying what Uncle Sam wants to hear
note how fumbling the whole "one trillion fresh money" scheme is working out. note how Tyler is making fun out of it
words are cheap
don 't you think most of the answers AND questions at such events are scripted ?
Maybe they would not even let you ask a question even when you managed to enter.
But I am sure Ghordius can fill in for Mario Draghi here at zerohedge...
well, our friend Haus claims he somehow managed to get thrown out of the "commentariat" section of The Daily Telegraph, so I have the impression he would be perfectly able to get thrown out of any ECB Q&A he wants
but Draghi and co. are humans, too. it is possible to get them to stammer incoherently, particularly in this very situation where they want to appease the Great Beast that is the Mighty US Stock Market with lies about moar EuroMoney, as Tyler calls it
question is, what for? algos hear what they are programmed for. the pushers for moar want to hear what they want to hear. you create a demand for lies, you get a suppliy of lies
what are we european supposed to do? lie down if front of the bulldozer?
remember that Haus is not currently interested in hearing how the EUR should be managed. he asks for the destruction of the EUR. which has a political and monetary price. does he offer something in exchange? if not, no way, Jose
the time might come for Plan N, the synchronized step-out of all national currencies out of the EUR. but the conditions have to be... opportune. we are in the middle of a currency war, the very thing the EUR was built for, from a monetary perspective
"we are in the middle of a currency war, the very thing the EUR was built for"
Ghordius, I do not doubt your knowledge to be superior, but you clearly have a political agenda ( like we all do to some degree ).
The Euro was primarily built to contain Germany, that is how I read it.
"the time might come for Plan N, the synchronized step-out of all national currencies out of the EUR"
Why not go in the opposite direction with the creation of a common currency between the US, the Eurozone AND Britain ? Is that not your wet dream ?
Maybe such a project could help to keep good relations between EU and US ( that is, manage the US decline in a manner acceptable to them, or am I completely deluded now ? ).
"The Euro was primarily built to contain Germany, that is how I read it."
this is a political goal. perhaps it is. but from a monetary perspective, a German DEM without any currency grid, swap arrangements, floors or pegs... would be the playball of unfriendly markets. a mid-sized currency on which everybody and his grandmother's dog would... bet
as often, I have to point to several other currencies sheltering under the EUR, like the CHF, but also the Danish, Polish, etc. currencies. they have an anchor. remove that anchor, and they would have to find a new one, either in the USD or... well the Yuan is not even there, yet
the whole idea of letting the DEM float is ridiculous, at this stage. it wouldn't if gold was soaring, but there it is. reality looks different from the calls of "market fundamentalists"
why should a global currency be my "wet dream"? all I ask is for price stability in the eurozone. a global currency is immediately a political instrument, which would immediately sacrifice price stability for lofty political goals
I sometimes wonder why it's so difficult to see that price stability - and so the capability of planning and producing with a satisfactorily precise costs calculation - is such a difficult goal to understand. so no, I do not have a political agenda, or, if I have, then it's just this: stability. in monetary and regulatory and judicial matters. and I maintain this is all that SMEs and entrepreneurs not bent into milking the state really want
and I don't see Britons ever sacrificing such a national pride symbol like the British Pound to any altars. nor is that necessary for anybody, including the Swedes or the Hungarians. they all have now their anchor, if they wish to use it. and they do use it
you see, Plan N could entail keeping the EUR as alternative currency, and keeping it as primary or secundary currency in the whole eurozone. but it's a serious option only in a completely different monetary environment, for example after the return of gold
the American Decline is something Americans have to manage, or not. Our advice is neither asked nor welcome. Their advice is welcome, and we strive to please, or at least appear to do so. This is The Way Of The World, or at least until a new hegemon appears on the horizon
I am not worthy that thou shouldest come under my roof; but only say the word, and I shall be healed. :-)
Thanks a lot for your answer !
Fat lady clearing her throat.
Monica is at it again?
Off topic; however:
Ex-CBS reporter: Government agency bugged my computer
Fascism is alive and well in D.C.
I called the Central Bank and told them I found papa's 500 million worth of Napoli Olive Oil Grindstone Company and they said they would gladly buy them from me.
The only problem I see here is that they spell Program[programme] wrong.
Maybe thats just me though.
fed stop, bce continue...
so what... announced month ago.. still think they will stop to inject their 200billion per 90days to let system crash to makes you happy... ?
rofl