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Do Not Show Mario Draghi This Chart
This was not supposed to happen... Once again it appears that front-running the central banks hints and selling the actions is the new normal as (just as occurred in the period around the Q€ announcement), despite pushging higher last week, inflation expectations have tumbled lower since Draghi unleashed the trillion-euro bazooka...
We're gonna need a bigger bazooka - and some ETFs to buy...
Chart: Bloomberg
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Charts like the Alps.
I like Alps
I prefer tetons
One would think after a six year running model of how QE creates deflation in assets, surely someone would have taken note of that...
if you print it, and there is nothing to spend it on (no sellers of bunds and other neagtive yield bonds), did you really print it?
Wake me when the Euro is $0.50 to the dollar.
Awesome, just awesome. I wanna be just like super Mario when I grow up......
i've never heard someone aspire to be worse than the devil.
I have only two words for everybody: Mission Accomplished.
Bunch of fucking idiots.
If/when theythey are hit by the proverbial bus they'll just say " who could have seen it coming."
It really is funny seeing sites like Market Watch pretend that negative intrest rates is ok and that everything is awesome. Then on the comments you have people that actually argue in agreement with the everything is awesome theme. Are they really that out of their mind or paid cheer leaders?
All central banksters will stick their fingers in their ears close their eyes and scream...nah,nah,nah,nah.
I can't hear you or see what you are talking about! It's always all about us!
Now fuck off!
There's a nasty squeeze on the $usd longs coming up in the next 12-24 hours. USDX 5-hr chart.
Fairfax Financial (FFH) made a big bet on CDS in 2003-2006. Payback in 07/08.
This time around they're betting on Deflation. US $111 Billion Notional in CPI-Linked Puts, approx. 50% US and 50% Europe. They spent around $600MM and wrote the contracts down to around $200 MM, and they are...just...starting...to...turn around.
Just a thought.
Thees chart eez-a --how you say-- sheet? I a-go back to work for-a Goldman-a Sachs.
I lol'd. Thanks.....needed
Looks like a somewhat strange Double Owl. Scary.
With a crashing euro it will be difficult not to have inflation.
Itz ze devil'z fork!
Uh uh. Cause when your start a QE cycle you admit to a lousy economy, hence low inflation expectations.
Why don't they just talk about doing something without actually doing it? Works for the Fed.
...
How about this explanation: Those who have bought sovereign bonds since Draghi's QE looked like becoming a sure thing were expecting the ECB to buy those bonds from them at inflated prices. Thus they felt comfortable pushing the purchase prices so high that they were in NIRP territory. It has been mooted that the ECB would pay 124% of previous purchase prices, which prices would have given the holders a nice profit. If Draghi did not rush into the market to purchase these bonds from the holders, the enthusiasm of buyers would diminish, resulting in lower prices being offered, and higher rates of return being recorded.