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Here Comes The Stick Save: ECB "QE Coming" Headline Sends Stocks To New Record High
Who could have seen that coming!!??? Apparently Draghi could not clarify exactly what he meant in 90 minutes, 3 hours ago!!!!
- *ECB SAID TO PREPARE BROAD-BASED QE PACKAGE FOR JANUARY MEETING
So, despite telling us earlier than not January and not ready, we get this spurious headline just as EURUSD crossed 1.2450... Fun-durr-mentals indeed.
Here is Bloomberg's Jana Randow:
- European Central Bank Governing Council expects to consider proposal for broad-based asset program including sovereign debt next month, two euro-area central-bank officials familiar with deliberations said.
- Package envisaged to include all kinds of bonds, no equities
- Package hasn’t been designed yet; no decision on implementation taken yet
- Composition of package may be influenced by incoming data
- Officials asked not to be identified because discussion is private
- ECB spokesman declines to comment
We would guess this is thanks to ECB's Daniele Nouy who is speaking at a German Finance Ministry event.
Here's the machines reading the headlines...
Currencies at 12:32 pic.twitter.com/A3kZjF3bFs
— Eric Scott Hunsader (@nanexllc) December 4, 2014
Is the market really going to fall for this again?!
* * *
And now Bloomberg is retracting:
Which is odd, because moments after we posted the tweet by Bloomberg's Eurozone economist, he promptly took it down (see here). A phone call from Frankfurt perhaps?
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Good for an 8 sigma rotation in ES.
QE Uber Alles.
when this fucker dies, i am gonna be sooooooo drunk....
Cocksuckers
Insolvent system. The game goes on until default.
Is it true that multi-ton purchasers of gold are paying 30-40% premiums? Heard through the grapevine...
I don't believe a word of it. first I don't believe any entity but a central bank can even obtain multi ton quantities of gold on the current market. If someone with tons (private entity) was willing to sell in that amount, it would be done in private and would be done at much higher prices that a mere 50% markup.
Right now there is a physical gold shortage which is worsening. LOOK AT GOFO. They don't pay you to store your gold when things are loose. GOFO is negative out to 6 months. This means that while paper gold can be created by any bullion bank willing to create such a promise, producing physical in this market is almost impossible.
The gold market is a secretive market. Billionaires don't advertise their gold wealth. Central banks don't either. The little that flows from mines barely keeps the demand for physical among the little people satisfied. It is likely some one (a central bank) has to sacrifice some of theirs to perpetuate the paper market. GLD has lost 625 tons over the past 2 years too. We are close to a failure of the gold market as it currently is structured. A derivative market for gold really does not make sense since there is always enough physical if the price is right. The derivative market has finally given the system the ability to short gold, something it really did not have in the past. That ability to short gold has been severely abused and now threatens not only the banks that wrote the offers but the entire derivative market. About 10 to 15% of the Forex market is XAU related trades. Hundreds of billions of gold is trade daily there...all paper. When the huge chunk of that market that is gold fails it will be the end.
http://www.benzinga.com/news/14/12/5058311/cnbcs-steve-leisman-confirmin...
CNBC's Steve Leisman Confirming from "Unnamed Source" ECB's Consideration of QE Package for Jan.
Steve "Cumdrop Good To The Last Drop" LIESman
Good post.
Gold's performance is an indictment of the whole Derivative markets. Especially when the benefits of manipulation are so much larger than the cost of the manipulation.
This is just more jawboning. And I doubt Draghi even said it. Some propaganda outlet just published the comments to suit its agenda.
Amazingly people still believe these guys. Fear and loathing!
No manipulation. ..bonds screaming
This is as much fun as submitting a doctor-ordered stool sample for evaluation...
Teach HFT's to read headlines and watch the market get weird. The name Draghi is the functional equivalent of bullshit artist.
the strategy for banks today was to sell europe markets and buy US markets before the EU closed, then flash a headline to complete the arb.......gonna check last minute volume on DAX etc futures for tomorrows follow thru open.
and yet they keep telling everyone that the central banks arent influencing equities
Default by printing.
Nope...you are wrong. Printing money will fix this. Well...printing money and lying will fix this. Ok so printing money, lying, giving shit away free will fix this. Actually printing, lying, free shit, and stealing will fix this. Umm...and a police state. So printing, lying, free shit, stealing and a police state will fix this. I forgot propaganda and mind control and drugs...but that's it and it's fixed. You just wait!
You forgot to add the "weather".
I logged in specifically to up-vote that.
+1
<sigh>... with booze, hookers and blow already added into the global GDP why not add rioting? That should send the markets to the moon.
We sticksaved some folks...
and alcohol goes so much further when you're belly is empty for a couple days.
Food, ultimate buzz kill.
i've been getting so drunk waiting for this fucker to die
Amazing how financial press and central bankers are truly one and the same. They don't even pretend anymore.
New Hillary Clinton country video inspires vomiting from both left and right:
http://tinyurl.com/mcmrht5
Please, make this stop....
DavidC
All the world's
a masquerade
made up of fools
and philosophers
Were it to rain
on our charade,
all washes away,
except for our true colors
If any people bothered
looking for truth, please,
STOP THE WORLD
from spinning 'round
instead we choose to follow
footsteps of fools, please
STOP THE WORLD
from spinning 'round
If nothing's new under the sun
for me and you
Won't somebody please...
Helped get me out of a hole on my long USD against JPY. Thanks algos.
You said " the Market ".... Funny
It's a great market. You know full well whats going to happen. Buy in the morning sell in the evening and GTFO till the morning.
Such an easy little 5% of funds side trading stratergy hahaha.
Funnily enough, bugger all effect on the DAX.
DavidC
DAX has been acting weird for the past couple of weeks, especially this morning *GMT* when it just wanted to climb and was resistant to any selling - Unlike the FTSE which wanted to go south right from the go
"Congress could soon allow the benefits of current retirees to be cut as part of an agreement to address the fiscal
distress confronting some of the nation’s 1,400 multiMemployer pension plans. Several unions and pension advocates opposing the move, which would be unprecedented, say that permitting financially strapped plans to cut retiree benefits would violate the central promise of traditional pensions: that they would provide a defined benefit for life.
“This proposal would devastate retirees and their surviving spouses,” said Karen Friedman, executive vice president of
the Pension Rights Center, a nonprofit group. “The proposal would also torpedo basic protections of the federal private
pension law .!.!. that states that once benefits are earned they can’t be cut back.” Several of the nation’s large multiMemployer pension plans are on a course that would leave them insolvent within a decade.
If that occurred, the federal insurance fund that protects the retirement benefits of more than 10 million Americans in multiMemployer plans could collapse. In a proposal made more than a year ago, a coalition of plan trustees and unions said the only way to salvage the most distressed pension plans without a government bailout is to allow them to cut retirement benefits before they run out
of money.
The reductions would be voted on by the trustees of individual plans, as well as retirees, under proposals
now being negotiated by lawmakers. Advocates point out that the plan laid out by the coalition would leave pensioners
in distressed plans with more than what they would receive from government pension insurance if their plans failed.
“The plans that are headed for insolvency would have benefit cuts under existing law,” said Randy G. DeFrehn, executive director of the National Coordinating Committee on Multiemployer Plans. “At least this proposal would preserve benefits above existing law.”
http://www.msn.com/en-us/news/politics/congress-could-soon-allow-pension...
This is a fucking joke. To the SEC: I'd like to report a bank that is manipulating stock prices...
The SEC is busy with their latest porn downloads...please call back later to hear the same message.
Who bought the spoos on that news? Now we cook & serve up the Goldilocks, "all important", Friday jobs Report and launch the Santa Claus rally.
QE forever and ever or until mushroom clouds appear to a city near you.
Gotta keep that stick on the ice.
Amazingly the boy who cried wolf again and again and again still seems to retain credibility.
Who are you talking about, Greenspan? Many "boys" to chose from.
The ECB has zero fucking credibility. What's even more pathetic is the macro news has been complete shit overnight and the markets completely ignore it.
What markets?
Right, how does anyone believe anything the CBs say? All of their predictions are wrong and everything they say they'll do, they don't. It's demonstrative that they have no credibility.
And Germany is ok with this?
Wait a couple days before placing those bets..
This nonsense needs to stop. Germany is a U.S. colony. They will be do as told.
I just don't know if the German people are going to take this lying down. They have been down this road before, and have a cultural memory of where careless money printing leads. Although I would have thought the Swiss understood the importance of gold, and look where that got them. Too much trust in govt propaganda by the masses I guess
When is the next election in Germany?
Nouy and Bullard just love messing with Algo #9.
And Gold just sits there going... " Hmm what ? " fuck'en joke.
And China today has just surpassed US, as the largest economy in the world; it's official. What better way to celebrate this with another green day for the S&P?
/s
http://www.marketwatch.com/story/its-official-america-is-now-no-2-2014-12-04
God Help America...
i think not.
What's worse is that fully one third of US GDP is .gov spending. Truth be told, US is probably no. 3 economy in terms of real production, maybe even #4. It's been said many times; that which cannot go on forever, won't.
It's a turkey shoot that's what it is, i can't help but think the levels of coordination is just a little too obvious to be untrue. Euro case:
1. We're not being explicit on QE (Result 50 pip dive to clear low stops)
2. Talk down the economy like nothing before (Result, Euro rises ~ 200 pips to take 450 stops)
3. Release statement when market turns long again, trapping thousands of long trades in an instant.
Result; banks filled at much higher prices for the next leg down.
yep, it is really hard to skim if no one is playing your game.
Time and again, if you see the spike in the brief second before the release(to lure the trigger happy in), you can be sure as shit it will go the other way; banks say that it's liquidity draining from the market, that's bs though. How is it liquidity draining if the volumes are increasing? Sick of being raped by these whores
Free. Effic...ah, what's the point? It's all pointless, is it not?
Fear not. The SEC will be on this pronto - just as soon at their employees take a break from looking at porn (not that there's anything inherently wrong with that) and putting the finishing touches on their fantasy football teams for the weekend.
Makes you wonder what the spiel was from the pols during the time ancient Rome came crashing down...
Same as it ever was, if there is no churning (buying and selling) then there is no skimming...
What a FUCKING SHIT-SHOW!
That is worth a double.
What a FUCKING SHIT-SHOW!
I shit you not...I've been sitting here doing nothing, and I'm convinced it IS time to BTFATH. This mother fucker will NEVER go down.
Agreed
Time to just go all in. I can't take the pain from being short anymore. What's the symbol for the 3x-Long?
Buy TNA
damm, have to translate Italy's Financial Statements:
http://www.bancaditalia.it/statistiche/SDDS/stat_fin/Aggregati_bilancio_...
Silly Gringo me.
AGGREGATI DI BILANCIO DELLA BANCA D'ITALIA
(valori di fine periodo; milioni di euro) 1
30/09/2014 31/10/2014 di cui: 30/09/2014 31/10/2014 di cui:
TOTALE ATTIVITA' 525,090 525,130 rivalutazioni del
mese TOTALE PASSIVITA' 525,090 525,130 rivalutazioni del
mese
aka. "Your party favors and vicesa are supporting the liquidity since petrodollars-damm petrodollars..."
Is it just me or did somebody draw the bottom part of a batman sign with the DJIA from 9:45am to 12:30pm?
At this point, they are just making fun of us, aren't they??
Are you fucking kidding me? People are still celebrating the fake news til now. What a stupid casino.
fuck off and die Draghi!!!!!!!!!!!!!!!!
Only stupids and junkies continue to trade this market which is just a literally fucking farce anymore.
Matter of IQ.
Perhaps, but for now at least the Etrade baby morons with their 'this is EZ' buttons are the geniuses.
Glad to see Goldman's prop desk make their daily score. What is the size of the Bloomberg cut, for providing the catalyst?
How can anyone believe in a freely functioning market anymore?
What's does a freely functioning market even matter when we've got guaranteed free money no matter what!
Those with a gun to their head while playing musical electric chairs STILL believe in the market!
And the muppets do as well.
It's futile for anyone to fight the Federal Reserve's constant stock pump fest because it's the only game they have now.
QE to infinity and beyond! So, who's going to help with the reset button ('cause we know we ain't paying that debt)? China or Russia? Let's just really mess with both of them until one snaps! Then, off with their heads!
Rediculous. Predictable. Sad. And, there is nothing we can do about it.
Central Bank coordination is now at an all time high. Japan is the new Queen of QE, after the USA dropped the ball. Here comes the ECB to carry it over the goal line!
Europe is now facing structural problems of an epic scale, though they refuse to recognize this fact. Lots of issues I could address, but I am most interested in the deep structural issues that play out over decades, not over this quarters GDP numbers! The ECB seeks to use financial engineering to address what are really a whole set of deep structural problems for Europe.
One huge problem is the EU itself and it's common currency the Euro. Many argue opposite to me, that the EU and Euro are what is holding Europe up economically not retarding the place. They no longer accept individual states, they believe in the United States of Europe, where some states just lag behind for generations and other like Germany prosper. I don't believe that tying Greece to Germany and Belgium in a common nation and currency is long run positive. We are at the point where social systems are beginning to approach break point. Like Spain, where the effort of several areas is directed towards independence because they believe the central core government is holding them back. Just as Brussels holds back or retards other states.
Population. Everyone praises the rising populations of Euope that is fed by immigration of low skill low productivity individuals and the millions of benefits tourists. These folks who nevre paid taxes have arrived to burden the welfare states to break point. This is why the political crisis in Sweden. Why UK has voters wanting to exit the EU. France plays dumb while it tries to direct immigrants into the UK and avoid adding to Muslim France. The social breakdowns are not far off, when city streets in England sport fewer chruches and more mosques where the unemployed gather to worship a god whose goal is to destroy the native peoples and forward Muslim religion onwards.
America's and NATO's deft move to seperate Russia from the EU economy is well underway. Thus Europe loses 150 million customers eager to buy consumer goods, and Russian industry eager for German machine tools and large industrial equipment, chemicals, drugs, cars, you name it. This also cuts the line to Europe's cheapest most reliable and cleanest energy source, Russian natural gas. Overall, if this separation continues, it is a huge net negative for Europe's growth. And the only benefit is to the USA ,who seek to degrade both Europe and Russia. Long term, a Europe without Russian energy is a bust. And NO American Natural gas, liquified and shipped across an ocean in tankers, is going to deliver only expensive gas and not enough of it. A real economy killer.
Too many people on too little land. Europe is not the USA, Canada, Australia or Russia, with vast resources and vast spaces to develop still. Europe is at the dead end, the sea is the only place the growth has left.
These are long term issues, for the next 20-30 years, the short term issues are not so good either, but the high productivity of Germany, Sweden and other Northern nations are a net plus. But Germany is already asked to support the whole EU project. That is not viable, and any sane person knows it. If France keeps going in the crapper, as I think it will, then it along with a sinking Italy can and will put the EU economy and social system to the test.
I am not bullish on Europe at present. It could solve many of it's problems. But Neocons from America run Europe, and Europe's own liberal elite class runs the social system that will collapse on it's own. The worst of both worlds. Bankers, Neocons and social "white hating" liberals with thier fingers on the open borders button!
Always enjoy your well thoughtful posts. Thank you,
Yves Mersch: Monetary policy and economic inequality
http://www.bis.org/review/r141020d.pdf
Read Oct 19 statement. Above is the 16th
https://www.bis.org/search/?q=ECB+QE&category=--&lang=--&mp=all&sb=1&adv=1
This regards ECB QE.
druggie is Merkel's bitch - druggie can't write a check for a candy bar - but central banks take their buying queues from druggie
True, but he wears high heeled men shoes and you can pat him on the head.
you guys are so negative
look what we have to look forward to
stand with hillary song
https://www.youtube.com/embed/rfU3hI8ML30
sarc button
so regret i clicked on that link
Look at the bright side, you saved me the pain.
+1
I knew the media would come riding to the rescue of precious stawk indexes! No red shall be allowed to stand, ever!
Having a late lunch, throw tv on, and fucking CNBC is selling houses in Alexandria VA. My mind exploded. Is this a normal segment? Are they preparing to have Liesman and Cramer to start selling home products when viewership falls to just a few of their relatives?
They actually had a segment where they showed a picture of a home and the address and then threw up the specs like square footage, etc, quickly discussed the advantages and then put up another house and so forth. Is there a group of Chinese real estate investors in town that don't have access to actual realtors???
'Hey we got QE comin for reelz!'
Markets retrace all losses.
'Oh hey we didn't really mean that, simmer down now.'
Markets retain all gains, close at record highs, mission accomplished again.
Yesterday I posted a comment on cbc.ca - an article about consumer debt in Canada topping $1.5 Trillion.
http://www.cbc.ca/news/business/equifax-debt-report-says-canadians-now-owe-1-5-trillion-1.2858643#commentwrapper
I posted: "There is no limit to the quantity of fiat money that can be conjured into existence, that is why bankers and politicians find it irresistible. FIAT MONEY IMPOSES NO DISCIPLINE. Want evidence to this fact, just peruse the past 5000 years of human history."
This was one of the replies: "..discipline is imposed. The most obvious one that comes to mind is hyperinflation. Sure you could print off infinite money, but then your money supply would far exceed it's demand, and it would be worthless. You should consider enrolling in an economics program. You seem to have some passion for the subject, misguided as it might be."
So, since central bankers are constrained by the threat of hyperinflation, sound monetary policy is insured. No need for gold.
Guess he was right, I should report to the nearest re-education centre.
double top in the DAX looks a lot like 2007 right before the slide...5-7 month spread between the peaks
What a fucking circus this all is! I want to dig up Keynes and take a piss on him.
How do people take this bumbling idiot seriously?
Price "Fixing" the CRB index is the new no so stealth little helper for QE.... apparently. Look Ma no inflation.