Deutsche Bank's Most Cynical Take On Draghi's QE Yet: Buy European Stocks Even Though QE Will "Prevent Improvements"

Tyler Durden's picture

For the most succinct, and most cynical, take on yesterday's ECB QE announcement we go to Deutsche Bank which 7 years after the grand money printing experiment started, has thrown in the towel on spinning the now annual CTRL-P ritual, and - in a nutshell - says: QE will fail to do anything but boost stocks, so may as well buy stocks.

To wit from DB's Jim Reid:

With the ECB now committed to a large and sustained QE program we continue to believe that this will be a good environment for European equities and European credit whether you like the fundamentals or not or whether you think it makes any difference to the economy longer-term. Indeed if you believe a lack of structural reform, increasing inequality and low fiscal injections are holding back growth then yesterday's announcement hardly changes the long-term picture. Indeed it could even prevent improvements here.

So yes, the printers are still playing music and one must dance, at least until the ECB pulls a "Swissy" and rips the rug out from under everyone. So enjoy it until then. As for those 99% whose lives are about to get even worse: better luck in the next life.

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NotApplicable's picture

Markets clear. Or they don't, if placed on life support.

Capital consumption continues one stock buy-back at a time (financed, of course).

Mr.Sono's picture

Good times ahead bitchezzz, hard on for the stocks every one.

ukspreads's picture

I've been saying that for the past couple of weeks - BTFD

PartysOver's picture

"QE will fail to do anything but boost stocks, so may as well buy stocks."

Well DUH!!!!!!!!!!!!!!

Party on Garth

SheepDog-One's picture

Something tells me EuroQEzing wIll be a short lived dud, after all it's not exactly 2008 conditions starting TARP and everyone believed we had a new magical black savior with a wizard boy Bernank.

ukspreads's picture

The news yesterday said it is until September next year..... Shoveling 60Bn a month into the system. BTFD

PartysOver's picture


Some peeps are just convinced that the world is going to implode.  I think what is greatly overlooked is the fact so few own so much wealth that they will never let it happen.  Thieves gotta be thieve'n.  There will always be wealth extraction/generation in some asset.

ukspreads's picture

PartysOver - I have to say, I'm very uncomfortable about the ramifications of all this QE, but as a trader, you've got to go with the money flow and  It's free money until September as far as I can tell

me again's picture
me again (not verified) Jan 23, 2015 9:26 AM

Or Silver. But only if you want to gain instead of lose.

youngman's picture

He is right....for all the wrong reasons....

LawsofPhysics's picture

So they admit that this is simply more money going to the bankers and financiers.

WOW, and still no guillotines.

NoDebt's picture

There's no shock left in anyone that I know.  We've all accepted this is how it's going to be until it isn't.

If they had said stuff like this 5 years ago there might have been genuine outrage, but not now.  There's nobody going to push back on any of this.  Therefore, no need to tells complex lies any more to cover up reality.

agstacks's picture

Laws- I like your posts, but have you heard the expression, "If you want something done you have to do it yourself"?  


Get out there and get us started..

LawsofPhysics's picture

We already have.  We are a farming co-op of well over 500, mostly former vets who are well armed and well-trained.  We know all of our local representation and our D.C. asshats.  Many of our children are active duty and some of us are billionaires if you consider our land assets alone.

We meet with our local government people on a regular basis, especially the county commisions who always seem to think of more regulator and land use stupid shit.  At these meeting I can tell you that as you look around the room, we are not the "nervous party".

In life the only thing anyone should learn to expect is risk and change.

same as it ever was.

IMO  - D.C. is lost.  Much like the break up of the former Soviet Union, if you want to stay in business you better know your local representation, your county commissions, and you local law-enforcement on a first name basis.

We are going to experience the very same thing and at the end of the day these people are our neighbors.  They will NOT enforce any tax laws out of D.C. or even any stupid local laws if they want to live peacefully, just like us.  Just look at that assault weapons and large clip ban in connectticut, NO ONE is enforcing it.   This is but one example of many more stupid and desperate acts of the morons that will eventually all reveal themselves.  Wait paitiently for them to do so.  Then you will know your real enemy.

LawsofPhysics's picture

"There's nobody going to push back on any of this." --  I disagree.  There will be push back but the serfs will not hear about it at all.  At least not until they are conscripted.

The real big players now realize that there no rules, period. They are free steal/con whereever and whenever, this will natural lead to pissing off other big players, which will lead to still other big players executing whomever they like...

follow our set course to the end...

JRobby's picture

"The real big players now realize that there no rules, period."

now realize ?

LawsofPhysics's picture

There is a code among theives, until there isn't.

Dr. Engali's picture

I was pleasantly surprised today when I hear that Kyle Bass and I are on the same page when it comes to interest rate hikes this year. He believes they won't go over 1% on the fed funds and they won't start hiking until November.

JRobby's picture

I'm in for an up vote

Lets talk again in November...................

(Looking for a sound link to post of a can being kicked down the road.)

NoDebt's picture

Yeah, I heard that, too.  Kyle's not always right, though.  Still, 1% Fed funds rate by Nov. 2016 still gets me there.  I don't think this is going to be a major nail-biter, though.  If they don't start in June or drop heavy hints it's imminent, it's probably over for me.

Racer's picture

Openly admitting it is a con in other words.

They know there is no dire consequences to them only benefits for pushing the pyramid scheme higher

Bill of Rights's picture

So buy fake stocks to make some more fake money...thanks for the tip.


Soon we will all be rich!

me again's picture
me again (not verified) Bill of Rights Jan 23, 2015 10:24 AM

Wow; it'll be great. we'll all have millioins of pumpfernickels; and when we cash in oiur whole portfolio, we'll be able to buy a cheezburger. I can't wait !








SheepDog-One's picture

No thanks, I wouldn't touch your Shitstawks with drunken Jim Laheys syphilitic cock.

Bill of Rights's picture
Sen. Warren to Drug Companies: ‘You Didn’t Do It Alone…We Built Those Innovations Together’

Coexist progressive scum...she's as fake as the current stooge


JRobby's picture

I don't buy the partnership angle. It sounds so friendly and cooperative. Not really the nature of business.


This is:

A Tax code issue

A Law enforcement issue

Two areas that are pretty fucked up


Savyindallas's picture

So what's wrong with her statement? It's true. 

LawsofPhysics's picture

The fucking pharma companies are writing the healthcare laws, just like the bankers and financiers are writing the fucking monetary and fiscal policy "laws".

How's that working out for everyone?


me again's picture
me again (not verified) LawsofPhysics Jan 23, 2015 10:16 AM

It'll probably work out about as well as the Fat Contracts the mauser arms Co. had from the German Gov. in 1944. Okay for awhile; then not so much.

Dubaibanker's picture

Did I hear someone is inflating a bubble?

Or is it guiding the sheeple to their eventual death?

Or was it the capitalist model gone socialist where all private billioniares (who can afford a $43 hot dog but can't keep people employed due to massive demand destruction and yet) have to be bailed out by the tax payer at any cost?

JRobby's picture

They need the transaction revenue.

"This is fucked, oh can we make some Euros on it?"


Ghordius's picture

"So yes, the printers are still playing music and one must dance, at least until the ECB pulls a "Swissy" and rips the rug out from under everyone "

ah, I see that Tyler is keeping an eye to small details. like the little question why the ECB bazooka is scheduled to start firing... in March

buzzsaw99's picture

i don't understand why they are only stealing trillions when they could be stealing quadrillions

q99x2's picture

BTFD makes the world go round the world go round the world go round

BTFD get rich quick and watch the world go boom the world go boom the world go boom

Same old equation that killer bankers prove once again, they prove once again.

Stop Lloyd Bankboom Bitcoin $232 Bitcoin $232 Bitcoin $232

falak pema's picture

The asymptote bitchezz, once you hit it, you are stuck at the top.

The only way forward is then DOWN !

me again's picture
me again (not verified) falak pema Jan 23, 2015 10:15 AM

does that mean if we goi backward we can go UP ? just wonderin.

falak pema's picture

once you've bought near the asymptote you are in and going backward means you sell at a loss, unless you are HG Wells and have a time machine. 

Nockian's picture

Bankers are 1 trick ponies, they make money from loaning money. Over the years they have found more and more ways to expand their lending, remove competition and socialise all risks. If they don't lend to people directly, then they can lend to governments and Hoover up the taxes. Now they are allowed to hoover up the savings of those who once enabled them to trade.

We have exceeded peak debt. There isn't anyone left to lend to, so now they are destroying capital. They are just like locusts. They won't stop until there is nothing left. They aren't considering the wider social context, or even pretending to, this is all out pillaging. And devil take the hindmost.

It's time to stop them. It's gone way past a bit of demonstrating. They own the government and the justice system. It's like one of those alien invasion films where the aliens have all the weapons and all the technology and can do what they bloody well like with us.

williambanzai7's picture

No, it will do something else. It will punish savers.

And it will create extreme resentment among the unemployed European millenials.

Ghordius's picture

the punishment of savers is already going on since quite a time. and you know who I blame for that, globally

but the unemployed European millennials... most I know of think that the ECB's QE promise is going to give them jobs

at least they are not being force-fed a steady dose of debt. WB7, this is the scariest graph of the world:

if this line does go on like this... a whole generation will revolt. but not in the eurozone

(and I have been attacked often enough here as a stodgy defender of the "status quo" that you might appreciate this... apocaliptic vision from me)