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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've heard of but have never seen a German sheizer video. But I do declare it feels like we're smack dab in the middle of one ask I type this.
And no we are not "enjoying" it.
I've heard of but have never seen a German sheizer video. But I do declare it feels like we're smack dab in the middle of one ask I type this.
And no we are not "enjoying" it.
WORDS! IT'S ALL WORDS!!
We fucked some shorts.
CB circle jerk till implosion....that is all
The EU is like Animal Farm rewriting the covenents of incorperation when it suits them.
Sometimes I really wonder if they can keep printing longer than I can stay solvent.
These SPY/XLF puts get expensive.
It does not matter if a good investment risk management system/process is in place. Here is more interesting ideas about risk management:
http://prudentvalueinvestor.blogspot.com/2015/01/risk-management-part-1....
gonna buy bonds eh? with what? my great grandkids' savings? earnings? did mr. merkell and the karlsruhe red hat crew sign off on this?
was this in the EU fine print? fuck the dragon lady AND mr lagard. i'm long pitchforks and the lichtenstein version of 'maps to the stars'
It's a good thing we don't have any significant trade with Europe or this could be a huge problem if the Euro crashes and they couldn't afford to buy products from [what remains of] our manufacturing capability.
What? Europe really IS our major export partner??? Oh well! At least the dollar, being 60% Euro-based, would look real good and we'll be able to use that added value in our trade with China.
Wait! Now you say that China's currency is pegged to the dollar and it won't help at all?
I give up.
My prediction: 50B a month with some kind of "gift" to Greece three days before Greece election will buy Europe the government they want.
For those who don't know already: QE == ball and chain of debt that drags an economy down, down, down... until the banksters foreclose on the fictitious nation, state, county, city... then gives the infestation 7 days to leave before the gas it turned on to exterminate the "vermin" on their property.
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The cure for excessive debt is debt.
The cure for excessive debt is more debt.
The cure for excessive debt is far more excessive debt.
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Who said the above?
The [central] banksters, of course.
For every problem, their solution is more debt.