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30 Hours After Unleashing ECB QE, Coeure Suggests QE2

Tyler Durden's picture




 

With US equities down 0.5% this morning and European inflation expectations having given back all their ECB QE gains, it was only a matter of time before some half-witted central-planner felt the need to speak...

  • *COEURE SAYS IF QE IMPACT ISN'T ENOUGH, "WE'LL HAVE TO DO MORE"
  • *COEURE SAYS ECB WILL ASSESS IF QE MUST GO BEYOND SEPTEMBER 2016

Sure enough - just as The BIS warned "the markets' buoyancy hinges on central banks' every word and deed," stocks picked back up on his comments.

" Recent events, if anything, have highlighted once more the degree to which markets are relying on central banks: the markets' buoyancy hinges on central banks' every word and deed. "

So now we know, it now takes just a 0.5% drop in the S&P to get verbal central bank intervention...

 

But it didn't work for inflation expectations...

 

So to answer the question: How do you spell Bullard in French? Simple, Coeure...

 

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Fri, 01/23/2015 - 12:11 | 5696880 Racer
Racer's picture

Lunatics

Fri, 01/23/2015 - 12:24 | 5696937 whotookmyalias
whotookmyalias's picture

As long as the lunatics allow them to print worthless IOUs, it will continue.  Between fiat and now digital currency, we've completely lost perspective on the basis for using money as a means of exchange.

Fri, 01/23/2015 - 12:34 | 5696983 Headbanger
Headbanger's picture

Tylers:  Moar like what you said here yesterday:

http://www.zerohedge.com/news/2015-01-22/here-are-negatives-todays-ecb-q...

Fri, 01/23/2015 - 12:36 | 5697005 SWRichmond
SWRichmond's picture

It should be obvious by now that they're selling a belief system:

"Believe in this QE, because believe we'll do more if we need to!"

Fri, 01/23/2015 - 13:04 | 5697113 SofaPapa
SofaPapa's picture

The ECB threw a party and invited everyone they knew.

Nobody came.

Solution?

Invite more people.

Fri, 01/23/2015 - 14:22 | 5697418 Wait What
Wait What's picture

exponential saturation, bitchez!

Fri, 01/23/2015 - 12:38 | 5697007 maskone909
maskone909's picture

time to add to some mining positions

Fri, 01/23/2015 - 14:21 | 5697416 KnuckleDragger-X
KnuckleDragger-X's picture

Your supposed to wait till the first doesn't work to announce the second round but now they are front running their own fail. It sure gives me buttloads of confidence.

Fri, 01/23/2015 - 12:30 | 5696976 1000yrdstare
1000yrdstare's picture

30 hours?!!

Wow! fucking epic fail!......or is it?

Fri, 01/23/2015 - 13:15 | 5697157 Bunga Bunga
Bunga Bunga's picture

QE4 by Monday morning.

Fri, 01/23/2015 - 14:23 | 5697422 KnuckleDragger-X
KnuckleDragger-X's picture

Failure only happens to the little people. They are merely adjusting their outlook due to new information and 30 hours just shows you how awesomely prescient they are.

Fri, 01/23/2015 - 12:13 | 5696883 Winston Churchill
Winston Churchill's picture

Going to need a bigger canon, screw bazookas.

Did they scrap Big Bertha ?

Fri, 01/23/2015 - 12:23 | 5696936 clade7
clade7's picture

They are dusting off some Gerald Bull designs as we speak!  Incoming!

Fri, 01/23/2015 - 13:00 | 5697099 NoDebt
NoDebt's picture

We need one of his guns he built from two 16" Iowa-class battleship barrels.  He could launch shells into low orbit with it.  Definitely something we should look into for the next round of QE.

I watched a documentary on him once.  It was fascinating.  He was the John Browning of artillery.

Fri, 01/23/2015 - 12:32 | 5696978 Thisisbullishright
Thisisbullishright's picture

Nail guns?  Rope?

 

Fri, 01/23/2015 - 13:01 | 5697106 NoDebt
NoDebt's picture

Check and check.

Fri, 01/23/2015 - 12:14 | 5696886 sunny
sunny's picture

So who is the more stupid, Coeure or the folks buying stocks based on Coeure's comments?

Fri, 01/23/2015 - 12:16 | 5696897 NotApplicable
NotApplicable's picture

Remains to be seen.

And the band played on...

Fri, 01/23/2015 - 12:18 | 5696898 Ghordius
Ghordius's picture

I'd say the algos. behold the terrible power of the words of an ECB banker

Fri, 01/23/2015 - 12:17 | 5696891 FreeShitter
FreeShitter's picture

Live by the central banks, die by the central banks.

Fri, 01/23/2015 - 12:17 | 5696894 Soul Glow
Soul Glow's picture

When are they going to admit that someone somewhere has been doing "QE" since 2008 when Bush did "TARP"?

Fri, 01/23/2015 - 12:17 | 5696901 Philo Beddoe
Philo Beddoe's picture

Ask one hundred working folks what QE stands for. Maybe one or two will give the correct answer. 

Fri, 01/23/2015 - 12:33 | 5696979 Chupacabra-322
Chupacabra-322's picture

Yea, but the two Sheep's answers would be: Ummmmmmm, Quantitative Easing the air out of footballs?

Fri, 01/23/2015 - 12:38 | 5697010 SheepDog-One
SheepDog-One's picture

Didja hear? Holeeeee fuck bro, some shenanigans may have gone on in a football game! I'm all OMG right now!

Fri, 01/23/2015 - 12:54 | 5697072 valley chick
valley chick's picture

Thanks for the laugh. Yesterday Faux Business had an alert banner that said "deflation concerns" and thought it was going to be about the ECB QE, just to find out they were talking about deflated phucking footballs.

Fri, 01/23/2015 - 12:35 | 5696992 Tinky
Tinky's picture

Survey says:

 

68% – no fucking idea

23% – Queen Elizabeth

7% – something to do with the economy

2% – Quantitative Easing

 

 

Fri, 01/23/2015 - 12:47 | 5697046 Buckaroo Banzai
Buckaroo Banzai's picture

58% - "Huh"?

22% - "Something to do with Football?"

19% - "Something to do with Gays?"

1% - "Quantitative Easing"

 

 

Fri, 01/23/2015 - 12:54 | 5697076 Headbanger
Headbanger's picture

Or... Try telling the average mook the Feral Reserve is NOT part of the Feral Gubmint but is OWNED by the banks.

Oh look!  A deflated fooball!

 

Fri, 01/23/2015 - 16:10 | 5697726 Chupacabra-322
Chupacabra-322's picture

Or that there's no "Federal" Government but instead a Criminal Fraud UNITED STATES CORP. INC. "Posing" as a functional Governement for the people, by the people & of the people when it's really Criminally Frauding The American People.

Oh, wait. The Kardashian's are on.

Fri, 01/23/2015 - 12:17 | 5696902 NotApplicable
NotApplicable's picture

That's not how politics works.

Fri, 01/23/2015 - 12:26 | 5696949 disabledvet
disabledvet's picture

Can't do that in Europe dude.

 

They don't have a Treasury Department.  "Only a printing press."

Fri, 01/23/2015 - 12:17 | 5696900 HardlyZero
HardlyZero's picture

Japan has warned for decades this will end badly.

Fri, 01/23/2015 - 12:18 | 5696907 wmbz
wmbz's picture

Going a little faster than I thought it would. Some panic is starting to set in with these guys.

Once they lose control and they are heading right for it, this thing will go ape shit!

FUBAR.... Sooner than later!

Fri, 01/23/2015 - 12:18 | 5696908 Bill of Rights
Bill of Rights's picture

So much fail....

Fri, 01/23/2015 - 12:19 | 5696909 Racer
Racer's picture

This reminds me of the 'boy who cried wolf'

.... the banksters saying 'do what it takes'

 

Fri, 01/23/2015 - 12:20 | 5696913 JRobby
JRobby's picture

COEURE SAYS IF QE IMPACT ISN'T ENOUGH, WE HAVE A PLAN TO MOVE THE PLANET TO ANOTHER SOLAR SYSTEM. AT THAT POINT, THE MONKEYS AND JACKALS FLYING OUT OF HIS ASS TURNED ON HIM AND DEVOURED HIM.

A SPOKESPERSON HAS REITERATED THAT THE SOLAR SYSTEM MOVE IS STILL ON THE TABLE

Fri, 01/23/2015 - 12:21 | 5696915 ZomBiEHiGH
ZomBiEHiGH's picture

Instead of QE 1, 2, 3, 4, 5, 6... why not call it QE8 flipped sideways

Fri, 01/23/2015 - 12:22 | 5696927 Thisisbullishright
Thisisbullishright's picture

Call it what it is....money printing!!

Has never worked...ever!

Fri, 01/23/2015 - 12:23 | 5696941 ZomBiEHiGH
ZomBiEHiGH's picture

Water you talking about, it has worked. For the 1%'ers that is.

Fri, 01/23/2015 - 12:41 | 5697020 SheepDog-One
SheepDog-One's picture

They can just name QE's by the day, QE-J23 for example for today's new QE.

Fri, 01/23/2015 - 12:21 | 5696916 czarangelus
czarangelus's picture

Good lord.

Nuttier than squirrel shit. These people are dumber than half a brick.

Fri, 01/23/2015 - 12:42 | 5697023 SheepDog-One
SheepDog-One's picture

And nothing could be scarier than retards with armies at their disposal.

Fri, 01/23/2015 - 12:20 | 5696918 falak pema
falak pema's picture

écoeurant (sickening) Coeure as the french say about heavy pudding.

Qe is now getting heavy on the market's liver.

Fri, 01/23/2015 - 12:20 | 5696923 Eternal Complainer
Eternal Complainer's picture

What? Are they trying to talk down gold in Eur?

Sarc/

Fri, 01/23/2015 - 12:23 | 5696930 Thisisbullishright
Thisisbullishright's picture

When this all breaks, and it will, it's going to break hard and fast!  It's going to make 2008/9 look like childs play to the next one!

Fri, 01/23/2015 - 12:22 | 5696932 Fun Facts
Fun Facts's picture

Across the Rothschild syndicate banking system...

The "money" is debt

the problem was that there was too much debt

now they added an order of magnitude more debt

so the "money" is now a bad debt

enjoy

Fri, 01/23/2015 - 13:02 | 5697109 justanothersucker
justanothersucker's picture

They will just send in their associates in the blue helmets to claim what is rightfully theirs.

Fri, 01/23/2015 - 12:24 | 5696934 Downtoolong
Downtoolong's picture

I've said it before and I'll say it again, Sometimes the "Long Enough Time Line" to zero isn't very long. 

Fri, 01/23/2015 - 12:24 | 5696935 Vincent Vega
Vincent Vega's picture

Gee whiz...I'm shocked.

Fri, 01/23/2015 - 12:23 | 5696940 Goldbugger
Goldbugger's picture

QE till worldwide currency's collapse

Fri, 01/23/2015 - 12:25 | 5696954 Eternal Complainer
Eternal Complainer's picture

Getting very close to freegold

Fri, 01/23/2015 - 12:27 | 5696957 FreeShitter
FreeShitter's picture

And/or WWIII

Fri, 01/23/2015 - 12:25 | 5696942 PoorMan429
PoorMan429's picture

the money multiplier is a bitch when you apply it to default on obligations. 

Fri, 01/23/2015 - 12:26 | 5696945 khakuda
khakuda's picture

I was wrong yesterday when wrote I thought it would take 8 days for this.  It took 24 hours.  Shows a level of desperation that probably says we are nearing the end.

The hubris of thinking that nations and individuals could spend beyond their means for decades and then print their way out of the depression needed to get rid of too much debt, capital misallocation and overvaluation is stunning.  The world is run by people who think that downturns are not a necessary feature of free markets when, in reality, markets don't work without them.

Fri, 01/23/2015 - 12:41 | 5697021 spinone
spinone's picture

If there is more currency printing than is justified by tangible things to purchase, then those with the access to the printed currency will bid up the prices of those tangible things. This result is in the wealth inequality we see reaching historic highs.

The unintended consequences of artificially low interest rates are manifesting. Over investment stemming from ZIRP is causing over supply, while debt saturated consumers with stagnant wages decrease demand.

Only debt write offs and income equality will rescue the economy, but the .01% don't want to give up their ill gotten gains. Our debts are their assets.

Fri, 01/23/2015 - 13:00 | 5697095 Livermore Legend
Livermore Legend's picture

".......people who think that downturns are not a necessary feature of free markets when, in reality, markets don't work without them...."

Precisely.

Adam Smith, the True "Father of Economics" had it exactly Right:

"The Invisible Hand"....

Defined as the Confluence of Human Nature and Mathematics......

And it cannot be Overcome........

"Hubris" is Spot On......

Fri, 01/23/2015 - 12:26 | 5696947 tok1
tok1's picture

Theres something off with reaction to ECB QE. When US/Japan/ China did  fiscal stimulus or QE oil/copper both rallied on expected increase in demand in the real economy. Since the  ECB QE they have continued their fall. Also rates went up initially both for US/Japan when they began QE on expectations inflation would rise (only to come down later) .. but here they have just fallen, ie only front running ECB, no expectation of improved growth / demand / inflation...


Fri, 01/23/2015 - 12:28 | 5696959 JRobby
JRobby's picture

A - Game Over

Fri, 01/23/2015 - 12:36 | 5697002 Fun Facts
Fun Facts's picture

Global fiat liquidity trap forming, no way out.

Printing more money will only exacerbate and accelerate the crisis of faith and drive rates more negative.

Fri, 01/23/2015 - 12:35 | 5696990 disabledvet
disabledvet's picture

Europe is a TRADING BLOC dude.

 

That means they are a HUGE consumer of commodities.

 

Nuking the euro means commodity prices collapse as demand collapses over their.  God forbid if the euro really does go to zero (this does happen btw.)

 

Interest rates will soar, demand will collapse and you'll get a ruinous inflation.  "Then ISIS will attack."

Fri, 01/23/2015 - 12:24 | 5696948 TabakLover
TabakLover's picture

Fuck those fucking fucks.

Fri, 01/23/2015 - 12:25 | 5696950 hotrod
hotrod's picture

 TO Infinity and Beyond

 

Fri, 01/23/2015 - 12:28 | 5696955 Temporalist
Temporalist's picture

My name is Steal Liesman.  Greetings interns to the CNBS intern orientation seminar.  We have a motto here: "There is nothing wrong with zero% interest rates and printing trillions of dollars and other currencies around the world for seven years straight as we are in a recovery."  Good luck you all are official CNBS financial journalists now.

Fri, 01/23/2015 - 12:28 | 5696961 Max Steel
Max Steel's picture

A week ago  geniuses were proclaiming the Russian market dead an buried...now, they are forced to report on some hard data!

Norilsk Jumps Most Since 2010 on ECB Stimulus: Russia Overnight

(Bloomberg) -- Russian stocks surged in New York, led by OAO GMK Norilsk Nickel and OAO Lukoil, as the European Central Bank’s plan to boost stimulus encouraged investors to look for riskier assets.
Shares of the world’s largest nickel producer jumped 9.3 percent to $16.17, the biggest gain since May 2010. American depositary receipts of Lukoil, Russia’s second-largest crude producer, added 5.7 percent to $44.24. The Market Vectors Russia ETF rose to the highest level in six weeks and Russian stocks trading in New York climbed for a second day after the Micex Index extended the world’s biggest advance this year.
Russian companies followed rallies in European equities on speculation that the ECB’s measures will boost the euro area’s near-stagnant economy and increase sales from the world’s biggest energy exporter. The nation’s stocks trade at valuations that are less than half the global emerging-market average as rating companies may strip the country of its investment-grade status amid an oil-price slump and sanctions over the Ukraine conflict.
“The ECB’s decision means that money will be cheaper and investors will have to buy something, so they are buying Russian equities, which are among the cheapest in emerging markets,”
Sergey Pigarev, an analyst at Rye, Man & Gor Securities in Moscow, said by phone. “The ECB’s plan to expand stimulus will revive Europe’s economy, which might eventually lead to an increase in energy companies’ sales in the region.”

More Cash

The ECB committed to a quantitative easing program worth at least 1.1 trillion euros ($1.3 trillion) as part of a once-and- for-all push to counter declines in consumer prices by putting more cash in circulation. In the U.S., three rounds of Federal Reserve stimulus helped the Standard & Poor’s 500 Index more than triple from a bear-market low in March 2009. The U.S.
central bank ended its easing program three months ago.
Norilsk, which plunged 36 percent between a July high and the end of 2014, has gained 17 percent this year amid projections that the metal’s price will rise. Its ADR trades at
6.4 times 12-month earnings, about half its valuation two years ago.
Lukoil is up 15 percent in New York this year after a 39 percent slide in 2014. The company will cut investments by $1.5 billion in 2015, Chief Executive Officer Vagit Alekperov said in an interview with Russian state TV channel Rossiya 24 from the World Economic Forum in Davos. It will probably delay a plan to list shares in Hong Kong, which is no longer realistic given the market, Alekperov said.

Junk Grade

The Russian rally may be short-lived, according to Aleksei Belkin of Kapital Asset Management LLC. Russia is on the brink of a recession after oil, which is the nation’s top export and, along with natural gas, accounts for about half its budget revenue, lost more than half its value since June.
The ruble has tumbled 46 percent over the past six months amid financing restrictions and export bans imposed by the U.S.
and its allies after President Vladimir Putin annexed Crimea.
Putin denies any military involvement.
“There are no long-term fundamental reasons for Russian equities to rally,” Belkin, who helps manage about $4 billion at Kapital, said by phone from Moscow. “The RTS index is at a level close to where it started to plunge in December, oil prices seem to stabilize but it’s not clear whether they will rebound, chances are high S&P is going to downgrade Russia to junk.”
Moody’s Investors Service lowered the country to Baa3, one step above junk, last week. The credit grade, which matches those of Standard & Poor’s and Fitch Ratings, is on review for a further reduction, Moody’s said.

Valuation Discount

The Bloomberg Russia-US Equity Index of the country’s most- traded stocks in New York surged 3.5 percent to 53.19. It slumped 52 percent last year. The Market Vectors ETF jumped 5.7 percent to $16.30. Futures on the RTS gauge rose 0.5 percent to
81,480 in U.S. hours. The Micex trades at 5.2 times projected 12-month earnings, a 55 percent discount to the multiple for stocks on the MSCI Emerging Markets gauge, according to data compiled by Bloomberg. United Co. Rusal rose 0.4 percent .

HK$5.12 at 10:54 a.m. in Hong Kong.
“It was foreign investors who bought Russia today,” Oleg Popov, a money manager at April Capital in Moscow, said by phone. “Investors wanted first-tier companies with good reputation, high liquidity and broad recognition.”

Fri, 01/23/2015 - 12:39 | 5697014 disabledvet
disabledvet's picture

BUT THEY WILL STILL HAVE DOLLARS.

 

Not ready to say "go long rubles" yet but at least they have a monetary policy.

Fri, 01/23/2015 - 12:43 | 5697025 Max Steel
Max Steel's picture

so what's the problem with dollar  ?

Fri, 01/23/2015 - 12:29 | 5696968 SpanishGoop
SpanishGoop's picture

And the eurusd is going dow.... wait what....up ?

 

Fri, 01/23/2015 - 12:29 | 5696973 yogibear
yogibear's picture

LOL, more and more printing until it all collapses.

We have seen this before in history.

 

 

Fri, 01/23/2015 - 12:33 | 5696981 SillySalesmanQu...
SillySalesmanQuestion's picture

Wow... that was a very short half-life...bazookas and cannons are'nt working, how about an ICBM full of Euros's.

Fri, 01/23/2015 - 12:34 | 5696982 orangegeek
orangegeek's picture

If Merkel doesn't sign, there is no ECB QE.  Fertig!

 

And so this is why we wait until March - so Dipshit can run around playing school yard politics to try to push Merkel into agreeing.

 

Draghi is a useless numbskull of epic proportions.

Fri, 01/23/2015 - 12:33 | 5696986 Thisisbullishright
Thisisbullishright's picture

You can only pull so many levers and have so many things go just right in the central banks Rube Goldberg machine!  One ball doesn't fall on the lever precisely right and the whole contraption stops!  I hope anyway...

 

Fri, 01/23/2015 - 12:54 | 5697073 tommylicious
tommylicious's picture

pulling each other's johnsons more accurately...

Fri, 01/23/2015 - 12:48 | 5696991 kowalli
kowalli's picture

AHAH, rates are too low, and there is too much cheap money from USA,Japan,China QE - so Europe QE and next QE will get less and less effect for economy

Fri, 01/23/2015 - 12:35 | 5696997 Bunga Bunga
Bunga Bunga's picture

Moar!

Fri, 01/23/2015 - 12:35 | 5696998 SheepDog-One
SheepDog-One's picture

Wow, like everything else European, pretty disappointing.

Fri, 01/23/2015 - 12:39 | 5697008 eddymunster
eddymunster's picture

Worldwide currency collapse is the goal. One is the lonliest number.

Fri, 01/23/2015 - 12:47 | 5697045 Inthemix96
Inthemix96's picture

I got this brand new program on my computer from a bloke at the petrol station, and it calculates proof.

I've run the numbers, and the sweet talk through the infallible system and can now, without a shadow of a doubt, with absolute certainty, and with irrefutable proof, prove that QE is utter fucking bollocks.  In fact, this system that cant be tampered with, as it has a unicorn setting has proved to me that QE is something called 'Odious Debt'.

And as all us ZH knows 'Odious Debt' cannot be repaid can it?  Because it doesnt 'Belong' to any of us does it?

Withdraw your implied, and complicit consent and tell these cunts to go fuck themselves.  Lets give these buggers war my friends.

:-)

Fri, 01/23/2015 - 12:49 | 5697052 Inthemix96
Inthemix96's picture

Edititeded for sepling

Cunts

;-)

Fri, 01/23/2015 - 12:47 | 5697048 tommylicious
tommylicious's picture

ENDUT!  HOCH HECH!

Fri, 01/23/2015 - 12:50 | 5697055 cornflakesdisease
cornflakesdisease's picture

What will happen next?

 

1.  Well, given that the European banks have all ready purchased the bonds that the ECB will buy, why they will magically have their balance sheets improved.

 

2.  Euro will have a boost in value short term (yes, your read that correctly)

 

3.  USA will now have it's turn in the washing machine as the boat lists the other way toward europe

 

4.  Oh what fun late this summer and fall will be.  I don't have any stocks, so I'm not worried.

 

Wow, 17,000 private jets in Davos?

Fri, 01/23/2015 - 13:08 | 5697126 Batman11
Batman11's picture

The directors of BIS are the major Central Bankers.

Are BIS empolyees afraid of their bosses and won't tell them directly?

Fri, 01/23/2015 - 13:09 | 5697136 Baby Eating Dingo22
Baby Eating Dingo22's picture

Immediately after leak news, Bloomberg was discussing need for QE2 in Sep 2016

"Data will determine" = "You can bank on it"

Fri, 01/23/2015 - 14:23 | 5697424 Clowns on Acid
Clowns on Acid's picture

Cramer says "Just print!" ... whats wrong with that ?  I wuz wonderin' if they could just print me some $ for my 2014 tax bill for me... it ain't that much I mean c'mon.

Fri, 01/23/2015 - 14:51 | 5697517 Overflow-admin
Overflow-admin's picture

QE Hotline? We Have A Problem!

Do NOT follow this link or you will be banned from the site!