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ECB Reports Only €9.8 Billion In Bond Purchases In First Full Week Of Q€
Unlike the Fed, the ECB's Q€ program is far more opaque, far more ad-hoc, and far more improvised (and at the rate it is soaking up already negligible collateral as JPM explained yesterday, soon to be far more abbreviated). In fact, without a daily POMO preview (such as what the Fed used to provide) nobody has any idea what is going or what the ECB will be buying until a week after the fact. Today, for the first time, the ECB provided the bare minimum data on its "Public sector purchase program" i.e., how much debt it had purchased in the first week of the ECB's QE. The answer: only €9.8 billion.
CBSPP3, ABSPP and PSPP cum. settled purchases as at 13/03/2015: 56,947 mln, 3,754 mln & 9,751 mln respectively. Website update to follow.
— ECB (@ecb) March 16, 2015
This being the central bank which refused to respond to a Bloomberg FOIA seeking to uncover what the ECB knew when, about Goldman's Greek FX swaps, don't expect any additional data breakdown, such as which CUSIPs the ECB has purchased, or which nations benefitted the most from the ECB's money printing generosity. All of that information may lead to the heads of ordinary European peasants exploding, and who can blame the ECB. After all this comes from a central bank servicing a current Commissioner who said "there can be no democratic choice against the European treaties" and whose former Commissioner said "democratic governments are often wrong. If you trust them too much they make bad decisions."
In fact, it is best to not give any information to these "democratic governments" and their constituent peasantry at all. Because a few central-planning BIS bankers always know best.
Snyde comments about Europe's democratic union aside, the take home from the above table, and why we said "only", is that a mere €9.8 billion in bond purchases was enough to break the European bond market, to expose the complete lack of collateral and in the process soak up all available liquidity (as explained before here).
So less than €10 billion down, €1.1 trillion to go, and the ECB hopes to have something resembling a bond market left afterwards?
Good luck.
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the ecb is deff buying a shit load of etfs.
just look at the fucking dax. its not even 3 months into the new year, and the fucking dax is up 25 percent
the ecb is fucking lost, and i hope europe experiences terrible pain
FUCK DRAGHI, FUCKING BASTARD
Dear Mr. Draghi,
Please put the pedal to the metal if you're going to buy 60B per month. Signed Mr. Yellen.
the theory of cognitive dissonance, which they detailed in the 1956 book When Prophecy Fails.
CD, I'm sure you are familiar.
The destructive nature of group think, now on display for all to see, may be the start of a new beginning.
After seeing the results of market melt-up from the FED purchases (and being burnt in the process I might add) it was more obvious of what to expect after Drahgi announced his purchases and I've been bleating BTFDAX every day since..
What I don't understand is why the Nikkei has been so strong, given their dire situation. Like others here, I'm expecting a monumental collapse some point in the future and will hope to get in on that action as well
Yeah, if Draghi is going to dump 1.3 trillion in toilet paper he needs to kick it in the ass because 9.8 billion is a mighty pitiful start.....
Draghi: You Ate Up Fukker.
It will not work unles it can be front run...
Have you not learned anything from the FED???
He needs to call the Krugmaster in for consultation......
So that's why the DAX is up 2% today...
Sheesh.
DavidC
they just create a Frankenstein's monster !!
9bln is penauts but the program is open end so the moment they will start buying 30-40bln lots of paper DAX will hit 20.000. Matter of month
Since when did 9.8 billion Euros become an only ???
Dear Mr. Hulk,
In a world measured in Trillions, Billions are 'only' a rounding error.
Signed,
Mr. Yellen
I'm not a violent person, but these people make it difficult not to desire the most horrific death imaginable for them.
that's how patriots are born...
same can be said for myself as well.
i dont really wish bad things on anyone for the most part, but these ppl r the exception.
we r dealing with a bunch of cruel bastards, whether its yellen, draghi, all bankers, etc
pathetic how S&P up 1% on bad macro out this morning ... wall street probably doing circle jerk on "patience" being left in FOMC statement this week ...
Monday. Madness. This shit is crazy!
reduce article to this:
Snyde comments about Europe's democratic union aside, the take home from the above table, and why we said "only", is that a mere €9.8 billion in bond purchases was enough to break the European bond market, to expose the complete lack of collateral and in the process soak up all available liquidity (as explained before here).
So less than €10 billion down, €1.1 trillion to go, and the ECB hopes to have something resembling a bond market left afterwards?
what if it's war, but nobody shows up? I like failure, particularly when it's failure to monetize "enough"
"So less than €10 billion down, €1.1 trillion to go, and the ECB hopes to have something resembling a bond market left afterwards? "
well, Tyler, a functioning sovereign bond market is important... if you want to raise moar debt. but your quip is misplaced, imho
watch the market participants hold their bonds tight, and tell me if this is not better, from the point of view of the sovereigns, then the opposite
the ECB is producing both the full QE expectations and a very tight market... with a minimum of ammo. I call that... efficient
the FED or the BoJ or even the BoE are way more wasteful for similar results
I'm starting to think this Q€ might take ages to get there. the NCBs call that... freedom to act when suited anyway
'Only 9.8B'.
Avg. German monthly wage is 3000 Draghicoinz.
Feels good, huh?
Is the DAX a penny stock now? What a joke
I know the printer needs new ink cartbridge
It is worth bearing in mind that a small tweak here and there in a complex adaptive system can often evoke massive changes as the butterfly v hurricane hypothesis promotes. But Mr Buckminster Fuller had it bang on:
“Something hit me very hard once, thinking about what one little man could do. Think of the Queen Mary — the whole ship goes by and then comes the rudder. And there's a tiny thing at the edge of the rudder called a trimtab. It's a miniature rudder. Just moving the little trim tab builds a low pressure that pulls the rudder around. It takes almost no effort at all. So I said that the little individual can be a trimtab. Society thinks it's going right by you, that it's left you altogether. But if you're doing dynamic things mentally, the fact is that you can just put your foot out like that and the whole big ship of state is going to go; So I said, call me Trimtab”.
Richard Buckminster Fuller