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Dutch ABN AMRO Demands Draghi Buy More, Faster As ECB's Mersch Flip-Flops
Once again today we see spurious ECB members sending more mixed messages about ECB actions in the near future (and really only impacting precious metals by the look of it. Having said just a month ago that ECB QE would only be undertaken in strict adherence with mandates and treaties, and warning that QE would strain the ECB's risk-bearing ability; today Luxembourger announced that ABS QE would start next week and Sovereign QE is an option if things get worse. One bank, at least, will be overjoyed... as ABN AMRO wrote this morning that that the ECB needs to bid more aggressively for covered bonds to encourage the street to sell to them.
Mersche a month ago...
- *MERSCH SAYS QE ONLY IN STRICT ADHERENCE WITH ECB MANDATE
- *MERSCH: QE WOULD STRAIN RISK-BEARING ABILITY OF BALANCE SHEET
And today, his memory seems short...
- *MERSCH SAYS ABS PURCHASES WILL START IN A WEEK
- *MERSCH SAYS SOVEREIGN QE OPTION IF SITUATION DETERIORATES
- *MERSCH SAYS GOVERNMENT-BOND PURCHASES ARE OPTION IF NEEDED
- *MERSCH SAYS MONETARY POLICY CAN ONLY BUY TIME FOR REFORMS
- *MERSCH SAYS ECB HAS EXHAUSTED ROOM TO CUT INTEREST RATES
And today, as Bloomberg reportsm, ABN demands the ECB pay up...
ECB needs to bid for covered bonds more aggressively in order to continue to buy significant amounts in secondary market, Joost Beaumont, analyst at ABN AMRO, writes in client note.
Estimates suggest ECB bought just EU400m/day of covered bonds on secondary market last week vs EU600m daily avg in first two weeks of program.
Slowdown in secondary activity reflects scarce availability of paper due to negative net supply and difficulty in convincing investors to sell bonds
EU7.4b of purchases exceeds ABN’s initial expectations
If central bank becomes more aggressive, impact on spreads likely to become more pronounced
ECB may need to cut EU1t balance sheet expansion target, Credit Suisse analysts said earlier
* * *
Roughly translated is: "we front-ran your program based on entirely non-economic rationales and now it's "fuck you, pay me" time."
Unintended consequence #34527, "whatever it takes" means buying everything at the worst possible prices and forcing EU taxpayers to carry that over-paying risk.
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Those bonds are as good as gold! Aren't they?
Gold you say?
http://www.ingoldwetrust.ch/did-abn-amro-default-on-its-gold-obligations
OK, ABN AMRO made a statement in April 2013. After hashing it all ove rthe author says: "Just wanted to give you another angle on this story. All it took me was one phone call, one email and some surfing on the web. As of yet I haven’t heard any ABN AMRO gold account holder complain he couldn’t get his physical gold out of Switzerland. If I do, I will surely report on it."
WTF?
Was that statement put out by the former ABN AMRO CEO who offed himself and his family?
http://www.zerohedge.com/news/2014-04-05/abn-amro-ex-ceo-found-dead
ABN Amro is state owned.
Sovereign QE is an option if things get worse?
If?
lol
So, sounds like a Plan B to me, Mr. Draghi.
What is Plan C if Plan B doesn't work?
Eurobonds?
When do the free people of Europe get to vote themselves out of the Euro?
Never?
Your last sentence... you know it's more complicated than that
Scotland, for example, recently nearly voted itself out of the UK and the EU
Don'tt you mean that Scotland, for example, recently nearly voted itself out of the UK (and the GBP) and into the Euro?
Damn, we forgot to put that bonus question. Guess they have to keep to the Pound. I can definitely imagine Scotland voting yes to UK while voting yes to the EUR. Just to stick it to the Bank of England
things get worse? But but but the European politician said so many times the crisis is over.
To tyler's:
"Roughly translated is: "we front-ran your program based on entirely non-economic rationales and now it's "fuck you, pay me" time."
Unintended consequence #34527, "whatever it takes" means buying everything at the worst possible prices and forcing EU taxpayers to carry that over-paying risk."
They did not have to frontrun, did they? Sometimes bankers are... cheeky, aren't they? Darling little rascals, eh?
Actually not the taxpayers nor the countries they pay taxes to. Actually it's the savers and holders of EUR. A small distinction that becomes bigger in the case of the USD, the global reserve currency. Ask China...
Those bonds are as good as gold! Aren't they?
Better, much better. Bonds exist for more than 10,000 years. Hunter-gatherers and ancient peasants loved to buy bonds issued by America, Spain or Japan. Especially if their duration was 100 years.
The Krauts won't let Euro QE happen.
All hail king Euro.
Not only the Krauts. In the English speaking media Southern Europeans are often portrayed as hopelessly socialists, and yet... many of them now say they deserve now a solid NO to QE. Particularly after all this suffering
And even more and more Northerners start to realize that balanced budgets in Europe are possible, even during crises
the eurozone is now way more "Austrian School" then during the last gold-backed period
The circle jerk of ponzi nations trying to out ponzi each other. Welcome to the new world of finance. The old debt can only be repaid with newer, larger debt. Its a ponzi world indeed.
SO how long before we start seeing money with one these horizontal 8's printed on it?
I could imagine a return to using Pieces of Eight very easily.
Schauble is not going to play. If he does, there will be a shitstorm arising over at the German Constitutional Court in no time...and he knows full well it will say no. The EU will be delt a massive political crisis, and it will be an unbluffable crap of a hand at that. That must not happen so therefore, the can will be kicked by saying "Nein!". There are no solutions except this, and one day, even this won´t work anymore. You´ll know when it´s all about to blow up when you see him suddenly announce his retirement due to health reasons.
the German Constitutional Court, utterly irrelevant, key word "German" what the "Germans" want in the EU is irrelevant, the "Germans" are now EU "tenants" with no sovereign rights, none, nada, zippo, zilch.
Germans do not pass Go, Do not collect $200 and Do not get out of financing the Muslim and African occupation of the EU-including their EU.
Germans are the EU's bitch, their draft mule, their fuck puppet.
Fuck you. Fellate me.
Eurozone Sovereign QE?
Think about that.
Whose bonds would YOU buy?
As I remember they have a Dutch bitch queen that is part of the illuminati and Royal Dutch Shell company (the murder of all those Vietnamese a ways back) that suffers from an inbred genetic mutation. No its not Draghi Queen Beatrix something about her feet. Oh yeah she also has cloven hooves.
did you see that thumbnail for this article?
OMG what a pig!
is that a wedding dress she's in???
that is disgusting! MOAR! aaaaahahahahahahahaha!
suey. suey. sue weeeeeeee!
oik oik oik!!!