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S&P Surges As ECB's QE Leaked: Board Proposes €50 Billion In Bond Monetization Per Month
And so with less than 24 hours to go, the ECB has decided to leak its deliberations not only to Merkel and Hollande, but Dow Jones. To wit:
- DJ: ECB EXEC BOARD'S QE PROPOSAL CALLS FOR ROUGHLY EUR50B IN BOND BUYS A MONTH - SOURCES
- ECB SAID TO PROPOSE QE OF 50 BILLION EUROS A MONTH THROUGH 2016
More as we see it, but if indeed this will be a program without risk-mutualization and conditional and limited burden-sharing, where the hope was that Draghi would "shock and awe" the world with the size of the bond purchasing program instead, €600 billion per year looks decidedly on the low side of any "surprise" announcement where the whisper number was for €1 trillion per year, and if indeed this is the final formulation may result in a substantial disappointment for stocks after the initial kneejerk reaction.
More from the WSJ which broke the news first, and was followed by Bloomberg and Reuters:
A proposal from the European Central Bank’s Frankfurt-based executive board calls for bond purchases of roughly €50 billion ($58 billion) per month that would last for a minimum of one year, according to people familiar with the matter.
The ECB’s executive board met Tuesday to decide on the proposal, which will form the basis of deliberations by the entire 25-member governing council on Thursday. The final number and details could change after the full board weighs in on the plan.
Still, the executive board’s proposal indicates that the ECB could move more aggressively than financial markets have expected. Forecasts among analysts have recently centered on a figure of around €500 billion or higher for a quantitative-easing program, but the executive board’s proposal suggests that bond purchases could amount to at least €600 billion.
An ECB spokesman declined to comment.
The knee-jerk reaction
Charts: Bloomberg
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I only believe it when i see it.
EC(entral)B(ank)
I kinda wish Draghi would either disappoint, but the more I think about it, maybe full retard would be more entertaining.
"Yes, I saw reports of a leak on the news yesterday. Regrettably that report is not accurate and had left off a zero."
TBF - ECB QE is not that surprising. I knew it had to happen before the project is abandoned. I am really looking forward to Ghordo rambling on about the ECB's balance sheet in the future.
EDIT -- TROLLOLOL "only AAA countries will benefit." (Merkel's condition for QE)
Count Draghi-ula will suck'em dry...
And right on queue, the monkeys have been released to try and beat down the paper gold and silver.
BTFD's
It won't matter this time... Everyone knows it's all bullshit after US and Japanese QE...
So fucking lame, it's all a charade, and they juggle to try to keep their bullshit house of cards proped up. Let this motherfucker fall already, we promise we won't lynch all of you.
Oh, they kicked the can again? No way. Germany won't allow this!!
<sound of can being forcefully kicked>
OK. See you in 2016, Mr. Apocalypse!!
Can't wait to see if PMs retrace this smackdown today and finish higher. If so, we have reached the tipping point.
That's good news, I just got my Estate Affidavit and Big Blue stocks I inherited are being sold right now! Now if Silver prices would just get smacked back down to $15.....
QE MERRY-GO-ROUND!!! I'm nauseous from the spinning.
yep...and so far the 18 handle has held up (for now; but looking a little weak) which is positive to see at this point. Paper gold is taking the biggest hit so far compared to silver so the GSR is pretty stable at 71:1 right now.
SRSRocco's report last night was that January is shaping up to be another record for phyzz ASE's compared to last January. The phyzz is definitely getting scooped up by a lot of big buyers somewhere.
ASE sales compared to AGE sales are around 61:1 while price is 71:1
Go figger, huh? Keep stackin' that silver phyzz, "folks"...these rock bottom prices won't last much longer and after this insanity finally ends we'll never come close to this shit again in any lifetime.
DONT FORGET ITS 2X THE SIZE THEY ADVERTISED OF 600 BILL , ITS 1.2 TRILLION OVER 2 YEARS!
It will be precisely ZERO Billions, Trillions or anyother-illions. They will announce after close of markets on Friday ... no bond buying.
It's truly gonna suck being in this market going into this weekend. Be warned.
The can is virtual, and it is a well known fact by those in control. The FED ran its course with the QE and the only way to keep the can having an appearance is with Euro and Yen QE's. As most know, that virtual can won't be able to be seen any longer. This has to be "their" way of imploding the system to justify bringing in something new. As stated before, who will control the new system under a new set of rules.
The can will be the only thing with any value soon. Someone's gonna pick it up.
No shock and awe here. I'll guess this leak of 50 BIL/MO. was a trial balloon, that is sinking fast, and Mario is now working on extra toppings for his deep-dish-of-cr*p pizza delivery tomorrow:
http://www.investing.com/indices/us-30-futures-advanced-chart
Laughable... quick sell all your metal and buy paper.
The relevant "leak" is the draining of value from everyone who owns Euros. The QE drain provides silent and effective theft from all. Impact is not a big when the U.S. does it although that may change soon.
Well if we can generate enough "this is nowhere near enough" chatter maybe they will add a zero. After all, that is why this trial balloon was leaked. Let's start seeing how big of a fire they can make.
We need another good financial conflagration.
Ex:
"If this is the level of QE that they do, I am not going to be able to afford formula for my baby."
"I was going to start a business, but I think that with this QE being so moderate, I will wait."
"50B a month? Nigger please."
pods
This news is almost worse than saying no QE yet
Because it shows how tapped out the Central Banks are now to do such futile efforts.
This announcement is meant to just get the markets and the media off the ECB's back about doing a QE
this "leak" comes from the Wall Street Journal, bloomberg and reuters. and it makes the mighty US Stock Market go up (and the EURUSD lower). just saying
So two ?
Never Go Full Retard! https://www.youtube.com/watch?v=X6WHBO_Qc-Q
Haus-Targaryen wrote: " I am really looking forward to Ghordius rambling on about the ECB's balance sheet in the future."
I somehow your comment until now. that rambling is about the decrease that nobody wants to hear about, then it spoils all dominant narratives
well, the way I see it it's probable that I'll be rambling about the NCB's balance sheets, in the future. might be more interesting
so there's nothing off-balance sheet, you think?
Never Go Full Retard!
Hmmmm . . . people actually believe anything these guys say ?
Like with tapering and how other methods can do the same thing to accomplish the banksters objectives under the radar.
They can't play unless Germany coughs up the cash but there are those pesky strings attached, plus if Germany has a couple of bad quarters it'll go away. Magic is hard work....
Anything under a trillion is chump change and even a trillion per year won't do much
to turn things around in the Euro Zone.
Agree, It might just be another Central bank lie in hopes the believers rush out and buy the bonds in advance. Keeps the ECB from getting stuck with those POS bonds.
The low number is to keep Germany on the reservation. Let's see if it works (even though we all know it's a lie, either outright or eventually will be increased)
Gold is yawning at the decision
not yawning!
Massive volume attack in the opposite direction where it should be going after these news.
Watch it come right back later today. It's not about QE or dollar strength anymore.
It's about fear and that's not going away anytime soon.
Could get some type of "repudiation."
This is like a socialized "cram down provision.". No wonder the Swiss exited.
And here it comes. Soon TPTB are going to have their hands full with the house of cards
and will have to leave gold alone. To the moon, Alice.
I wonder how much gold they dumped to get this $10 temporary dip.
The deep pocket boys will be buying every dip now and attacking gold
is going to be very costly.
1300 is the new 1200 for now....the bankster fucks will do everything to keep it here.
Looks like gold and silver are coming back already. They will have to empty Fort Knox and
borrow all the physical in GLD to keep this attack against gold going.
And "BAM" they smacked it again. Good luck keeping this monster trapped in
a paper bag. When it breaks out, I hope it bites them in the ass.
Gold isn't "doing" anything....it's being fkn hammered down, while stocks are being elevated because that's what the fkn script calls for.
Try to keep up.
It may loose it's value as well ... to amunition.
Market lift off in 3,2,1.....MOAR!
because, what the world needs now is negative rates on bunds out to 20 years to stimulate "growth".
101 years: "because, what the world needs now is negative rates on bunds out to 20 years to stimulate "growth"."
You really wonder why they bother to spew out b.s. The majority of the public is too ignorant to even understand their statements. "QE - naw, never heard of it. Are they a new band? "
Those who do understand know it's all propaganda lies.
boring
Trial balloon to see the reaction...adjust as needed.
Trial balloon is absolutely right, they have 2 chances at it now. If markets react negatively,
they will up the ante tomorrow saying leak was bogus
Yep, adjust the numbers for shock value. Like this means anything anymore.
How the fuck is this supposed to work? More debt to get things going again? Really, the emporer is not only naked, he's dancing on the table at Thanksgiving dinner after two bottles of wine.
This is such an obviously fucked up move, and yet the "markets" wait, drooling. I have had it. No more.
Three words - negative savings rates OR negative bond rates. How much does this "economy" have to be pushed against the wall before it collapses? This shit is RIGHT OUT IN THE OPEN. STOP THIS BULLSHIT AND TAKE THE OTHER PILL.
Sometimes I sit and think about all the lives this has screwed up in places I have never been for people I have never met. Destruction for the sake of greed on the backs of those who can least afford it.
Too bad the sheep are more concerned with the upcoming stupid bowl. NIRP wont even awake them. Its going to take something on an apocalyptic level to get their attention.
Someone made a post about the SB on another board I frequent.
I did not even know who is in the SB.
pods
I don't even know what SB means - backwards Bulls**t?
dooferbowl
fansmanship for drooling zombies
Sometimes I sit and think about all the lives this has screwed up in places I have never been for people I have never met.
Sometimes I sit and think of all the lives that by now would have been lost due to mass societal chaos if they had not been able to pull off this massive charade.
ALL the social programs that are keeping millions (billions) alive are being funded with debt. Truly amazing that 99.999% don't even know how the funds, that their lives depend upon, are being created
If you like your life, you can keep your life.
* As long as infinite debt is available.
@ BandGap
Wow. Well said.
The problem as I see it these days is the meme put out by all of the "pundits" and propagated by the msm that characterizes the alternative course as too painful. The sheep believe that taking the medicine could in fact lead to a reset that they will not survive. Literally. And their "leaders" know it. We entered a long dark tunnel a long time ago, and most have grown so acccustomed to it that they believe they can see well enough in the dark. Their eyes are no longer capable of handling the light. It blinds them. The problem, of course, is that the longer the tunnel, the greater the eventual cave-in that will crush ever more of the blind and their blind leaders. And this tunnel actually has a point of light at its end that keeps receding.
I have come to the conclusion, however, that the willingness to proceed ever further into the dark will continue to surprise us. Patience is required. Be prepared.
I vacillate between observing ignorance is bliss and people who actually believe it will all get better. Fuck, some of them are still talking about some elected asshole pulling this shit out of the fire.
But I have also seen the light come on in quite a few peoples' eyes, and thank God several of these are in my family. I would encourage all to keep the message strong, albeit low key. Funny, but the reality has far more traction on college campuses than I would have thought.
It's hard to be patient waiting for something bad to happen. I am in the camp that rips the band-aid off when the time comes. As an analytical person who strives to be open and honest, most of this shit drives me nuts. I could not watch the brown clown's "speech" last night as I cannot tolerate his voice. It's more disgust than hate. Like watching a snake swallow a beautiful bird, I turn it off or switch channels.
board proposes $50B per month - board proposes free popsicles, board proposes blah blah blah
without Merkel, Draghi remains a dried up piece of shit
<And believe me, it's not enough.>
Not enough but still too much.
All the world's problems are fixed. Buy buy buy!
This had its desired effect. Equity prices - once in the red - have transitioned into a lovely shade of green.
Mission: Accomplished.
Leaked...what a joke the ECB is.
Do very little whatever it takes
€600 billion....aw that's not nearly good enough to fill everyone's Hopium hookahs.....up that shit to at least €7 Trillion free money's then we're talkin!
Gets them near the ballpark of the 250 billion per quarter they need to keep this shit train moving.
The only reason they didn't announce 7 trillion is because the logging industry just can't keep up with the world QE printing press.
Maybe that's the plan, print money until we run out of trees? then fiat might be worth something, a scarce commodity? Fucking idiots.
Now if only Greece would exit and oil spike to 200 we can really get a rally going
The Swiss build you up to expect something big and all you get is, well, something that without the Swiss announcement would have seemed big. Six hundred billion Euros is a *lot* of money. That's 20% of the German GDP.
The Swiss did a good job of running interference, making this seem like No Big Deal in retrospect of the fear generated last week.
dont worry ecb qe in two steps
first 50b per month
next 50b plus 25b ( need moar)
but .85927 was crazy anyway - werent it?
http://www.xe.com/currencycharts/?from=USD&to=EUR&view=12h
I think they are trying to do a Sony Interview stunt.
Doesn't change the facts on the ground; MOAR can kicking, that is all....
I wish the knee-jerk reaction was streets filled with axe and rope wielding 'folks' outside the ECB HQ.
So whose ass did they pull that number from?
Doesn't matter
Now that they shot their load and market's enchantment has dwindled before the headline even finished scrolling, what's next???
Tut, tut; this figure has been arrived at VERY scientifically.
They determined that 59.9999999B was much too little; but 60.0000001B was much too much.
MOAR, MOAR GIVE US MOAR.............
Looks like the ECB will be just in time for the BOJ to turn off the spigot, just like the BOJ was just in time for the FED.
Keep the fiat sloshing back and forth across the globe Central Bankers, and one of these days all the debt will magically go away! Economic escape velocity will be just around the next month/quarter/year!
anybody still doubting the world government? it's a perfect coordinated supranational effort of QE baton passing by the central bankers, who get their orders from god knows who. sovereign governments are just left to dumb down their domestic masses, choke the local economies with taxes or to just push everybody to war when the orders come through.
Gold should be going much higher based on this "leak". Corrupt Idiots.
Yes it should, however it's been several years since metals have behaved in a rational way; we entered opposite world some moons ago.
EU does $50 billion/month and the US does QE 4 at $170 billion/month.
Print to infinity.
don't know. in the last two years, the ECB balance sheet decreased by 1'000 billions. let's say 25 months, that's minus 40 billion/month nobody talks about
Yep, the Fed's balance sheet is still very much growing.
Full faith and credit motherfuckers.
Called this, it's crap, this is not a bazooka. I bet it also (in the fine print) is loaded with caveats.
Draghi is all mouth no trousers. The markets should be tanking on this, especially the massively inflated DAX.
Pure shit, fuckin' laughable markets. I hope they drop in high three figure territory, just for shits and giggles.
Guaranteed he's not buying the junk debt of Greece and the other failed sovereigns. Can't see him buying any debt where the interest rates are negative. This whole plan of QE is just completely beyond absurd at this point.
Thar she blows bitchez. YeeeeeeeHaaaaaa QEmore here we go. But did you BTFD?
It's for the middle class.
(If I have to add a /sarc, then you are not paying attention).
Just copy Japan,get it over with losers.
Ive been saying this for awhile...its going to be QE forever until WWIII. Its just that simple.
Hell..in the first month the countries will try to sell 1 trillion worth of debt....Politicians love freee money....and that is what this is...Greece will offer 500 billion just on their own I bet.....why not...its free money...
Why would anyone be BTFD on this! If the market loves this wet fart Draghi will be pissing his pants with laughter.
He must have been expecting everyone to throw their toys out of the pram on this leak, only to bring even more tomorrow.
Well played Draghi, I have a bottle of water here, can you make it into a very decent red please. Muppets.
Will the interest paid be NIRP (negative) to the ECB? Should be if it follows what has been happening. Which means this is practically meaningless.
hardly a bazooka, hardly shock and awe. moar like, aw gee wally, is that all? doubtful it will even move the dax 3% like i figured.
Still don't see it happening, and if so, its already priced in looking at EUR/USD. I cannot wait to see Brent's reaction should Euros rain from helicopters.
this is less than helicopter ben...
step it up yo
50 billion a month in Japan, another 50 billion in Euroland and now we're talking some real fiat. I'm guessing that by September, Bullard will have done a complete 720° and the the FED will be adding another 50 billion to the pile, just for shits and giggles.
That first 50 billion is going to go to pay for the bills from all the politicians in Davos.....that was expensive this year...
I keep telling you, but you don't listen. We're just one or two accounting gimmicks away from being rich. RICH, I tells ya!!!
The usual bullshit. Just enough to keep the market creeping up slowly on the wall of worry with the constant potential of implosion. Algos are going to love ECB QE. Since this QE is on the low side, the ECB are sending a message to the european politicans they actually will have to do some work. Of course, they wont get that message.
I do NOT see why everyone here is so negative. Look how well QE worked for Japan and the USofA...
Isnt there an election in Greece that could make this all moot? I read something about that a while back, seems to have been forgotten....
Also See:
ECB May Deliver $635 Billion to Steer Euro Away From Deflation
19 January 2015, by Alessandro Speciale and Andre Tartar (Bloomberg)
http://www.bloomberg.com/news/print/2015-01-19/draghi-s-big-push-seen-delivering-635-billion-with-qe-this-week.html
They may eventually get the inflation they want by devaluing the currency but they are absolutely destroying the economy right now.
Where is the 'Its a trap guy"?
THey are leaking a low ball #, they will end up doing 2x this making everyone dump their load and buy stocks after they clean thier keyboard. S&P 2100 tmr
ECB - Everyone Can Believe....or Excrement Coming Below...
Gold shat, Oil popped, Euro popped, USD dip, Dow EN up. Suspect mega pump and dump. Will be fun to see this one work out today.
Long Gaviscon
ECB - Everyone Can Believe....or Excrement Coming Below...
Another example of TPTB tryin' "to own the world in fee-simple." (owning title) The ECB creates the money out of thin-air, then the suckers trade in their bonds (backed by title to something) for this thin-air money. When TPTB decide they've collected as much as they can this way, they will let the currency (thin-air) money collapse, which will let them collect additional title from those who can no longer complete their promises. Clever, don't you think? Fake money for real title. The Great Red Dragon (Serpent, Snakes In Suits, etc) at work. And to think this came out of a book published in 1889. http://GreatRedDragon.com No ads and book is free, courtesy of the Univerity of California.
The word "idiots" comes to mind...
LOL!!!!!!!!
What hasn't worked will be tried even harder!!
Fucking idiots, none of whom will be held accountable.
Roll the motherfucking guillotines and clean these fucker out, it should be apparent to everyone now that nothing changes otherwise.
i was actually surprised, when doing bible code it ends in 2016 no years after that, the word "guillotines" actually appears in 2015/2016
You KNOW it DID work, exactly as planned.
You're just not cynical enough yet.
Invest in Gold, invest in Cryptocurrencies! Once this whole QE charade blows up people will run to safety. The ony safe things will be Cryptocurrencies, which can't be confiscated and physical Gold/Silver. Cryptocurrencies are the perfect vehicle because they can be moved around/stored with no large overhead costs, gold however is more expensive to store.
Q.e. And zirp are not stimulus. It's fuel for risk free bond speculation which starves the real economy of capital and mothballs the means of production.
It is a setup. Draghi will go big. They are fucing with the muppets.
I agree. This is a set-up so they can beat the estimate tomorrow and surprise the market.
printing more money, hell why did we not try this before
So, Draghi decides to not jump the shark but he does jump the carp.
Gold dips... typical.
Germans just don't learn. Got their assess kicked in more ways than one and numerous times. Sheisskopfs!
Rock weiter ab!
Could Super Mario have a cunning plan? (do you get Black Adder in the US?)
The leak is what he wants to do.
If the German's don't play ball he can blame them for the consequences.
I'm sure you already knew this, but Mario was a former managing director of Goldman Sachs in Europe, heads the European Central Bank after his reign as Govenor of Bank of Italy and all other sorts of positions with a PhD in Econ from MIT.
OH how we all wish we could be priveledged born revolving doors. Sure must be nice to be the super Mario Brothers (Draghi and Ciampi)--- just hop on some mushrooms and grab coings.
Oh how sweet it is.
Does he have a plan?
Is it HIS plan? The irony is that his "former" employer (Goldman Sachs) was started by Germans.
He signed Italy over to GS on interest rate swaps. I wonder how it will fold for Germany... unless you think it's amusing to see a sheltie dog herd pitbulls. That's literally the only metaphor I can come up with to describe my thoughts on the issue.
German plans to dominate Europe 70 years ago came unstuck.
They are doing better this time.
Shut up Baldrick, I am trying to think. I now have cunning plan.
It was mine first, sir.
No, Baldrick, it was not.
(yes we do).
50 bill. euros per month until end-2016 = 50 x 23 months = 1.15 trillion euros. Will Germany really accept footing their (main) part of this bill?
Nothing says "Business-as-Usual" in the FX market like "leaked" information to the designated credentialed elite asshats in the media; but only after some other well connected traders [e.g. Vampire Squid et al] get the info first. Muppets beware.
www.traderzoo.mobi
If it's not the FED it's Japan now the ECB , they CAN'T STOP QE or the system will COLLAPSE and they know it.We are all FUCKED.
But i don't give a fuck anymore.
http://markmanson.net/not-giving-a-fuck
I hope we can all agree to stop using the word "market" or even "index" when referring to whatever the fuck this farce has become.
you know if you think about it we have a word for crooked bankers ( banksters ) we really need a word for Crooked Markets.. come on Zero hedge fill in the Blanks.. if we do it right it will go global, viral whatever you call it when CNBC steals it and laughs at it...
Muppets just took another one. 8 points on the /ES mini in a matter of minutes - up to 2030 on the futures.
Thank goodness Gold is creeping back up. Something has to behave as if the Universe is still a rational place governed by the apparent laws of Physics.
So what’s the consensus here: S&P 500 Up or Down over the next few days???
Based on what? The close from yesterday (Tue Jan 20)?
I say it will be lower by next Wed. Or higher. No wait - it will be a different price.
Yes
This leak sounds like a disappointing set of QE details -- and yet the S&P surges??
And gold drops - isnt there going to be a flood of new liquidity?
And Oil surges - won't disappointing QE details mean 'less growth'?
^^^ My thoughts exactly.
"Do you know what this means?!? It means that this damn thing doesn't work at all!!!"
https://www.youtube.com/watch?v=dIIugm_FJOg&index=7&list=PLJAImambaXCa8X...
the charge of the light brigade, onward rode the 50 billions.
The battle of Balaclava begins in 2016 ! I hope Putin agrees to that date!
What do we do in 2015 ?
Watch the Oil plunge to 10? Then rise to 100?
Oh I get it we begin NOW upto end 2016.
Well, by then the US will have elected a new Potus and the printing can start in...DC !
merry go round.
you had me at the first line, into the valley of debt rode the 50 billion
a valley that is more like the grand canyon since 2008.
Looks like a Thelma and Louise moment for us all.
The question is, followed by a guillotine moment for them all? No, I didn't think so.
There is no coincidence that Japan began printing once the Fed stopped. That is is what all these criminals have agreed to...a game of fiat hot potate.
Fed stops BOJ began printing
BOJ will stop and ECB will start printing
And now we know when QE4 arrives...as soon as the ECB prints all their ponzi money.
And this is ALL AGREED UPON behind closed doors. They digitize fresh new ponzis and buy Futures and ETFs..anything to keep their buddies rich and then they leave their posts and positions and go to collect their payoff...Only one thing will end that..
i don't believe they agreed to anything because i just can't believe that draghi, yellen et al are left to decide anything besides the details how to implement the policy they have been dictated by their superiors. this just shows that they all have the same boss.
And Canada does our part
http://www.huffingtonpost.ca/2015/01/21/tsx-boc-interest-rate_n_6516010.html
WTF. Draghi is like a kiddy fiddler with a bag of sweets. He's got loads of sweets in his bag, but you can only have one a day, providing he can touch your foofoo.
This is just Draghi building up 'acceptance' momentum prior to the official announcement in an effort to off-gas Germany's boiling beer kettle.
Look for Germany to give the EU the finger next.
That will be ONE FAT FINGER.
IMO, whatever they decide to print (Euros), I expect more EU countries to kiss the Euro goodbye. Tee-up Germany first. The next couple of weeks shoud be fun to watch (markets). Like a 1-legged cat trying to bury shit on a frozen pond...
Like a ram gettin ready to jam the lamb.
wall street isn't going to be happy just because the central bankers do what it takes, they want someone who does moar than it takes
I thought the ECB was constitutionally prohibited from onetizing these bonds via purchase??
Matching an announcement with instructions to trade the required direction...........it's all they have left.
It's like the last splutter of an engine as the fuel runs dry.