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Draghi Tells Euro Shorts To "Make His Day", Again

Tyler Durden's picture




 

With a “defiant” Syriza determined to hold onto any shred of dignity and legitimacy that may remain in the wake of months of painful negotiations with its creditors and with a €5 billion advance from Russia (a large chunk of which will promptly be paid to the IMF which use it to bailout Ukraine which will hand it right back to Russia) shaping up to be the last lifeline for Greece before Athens is reduced to issuing IOUs to pay pensions and salaries, the focus is beginning to shift away from Grexit and towards contagion risk. 

The worry is that once Greece goes, both the credit market and periphery depositors will suddenly realize that the EMU is not “indissoluble,” but is in fact nothing more than a confederation of fixed exchange rates. This realization could (and to a certain extent already has) cause credit investors to begin pricing redenomination risk back into sovereign spreads and, far more importantly (because as UBS recently noted, bonds don’t cause breakups, bank runs do), may lead depositors to question the wisdom of holding their euros in bank accounts where they’re earning next to no interest and where, should some “accident” occur, they are subject to conversion into a national currency that would swiftly collapse against the euro once introduced. 

And so, with every sell side European credit strategist trying to figure out what happens when €60 billion in monthly asset purchases by a central bank collide head on with an unprecedented sovereign default and with speculators’ net short position on the EUR now at levels last seen in 2012, it’s time to bring out the big guns with Mario Draghi staging a sequel to his now famous “whatever it takes” speech which came in the summer of 2012, when spreads were blowing out across the periphery and when euro net shorts looked a lot like they do today. 

While conceding that a Greek exit from the euro would put everyone in “uncharted waters,” Draghi says he has the tools to combat contagion and as for shorting the euro, well, perhaps the best way to sum up Draghi’s position is to quote Clint Eastwood: “go ahead, make my day.” 

Here’s more via FT:

Mario Draghi said the euro area was better equipped than it had been in the past to deal with a new Greek crisis but warned of “uncharted waters” if the situation were to deteriorate badly.

 

The European Central Bank president called for the resumption of detailed discussions aimed at resolving the country’s debt woes and urged the Greek authorities to bring forward proposals that ensured fairness, growth, fiscal stability, financial stability.

Asked about the risks of contagion from a new flare-up in Greece, he said: “we have enough instruments at this point in time . . . which although they have been designed for other purposes would certainly be used at a crisis time if needed”...

 

However Mr Draghi added: “Having said that, we are certainly entering into uncharted waters if the crisis were to precipitate, and it is very premature to make any speculation about it.”

 

The ECB president was speaking following meetings in Washington that have been overshadowed by renewed fears about the risk of a Greek debt default and possible exit from the euro…

 

Expressing confidence in the euro’s continued stability, Mr Draghi said on Saturday it was “pointless” to go short on the single currency — challenging anyone who disagreed to do it.

So with the challenge thus issued, the question now is whether or not Draghi’s jawboning has a similar effect on the EUR this time around as it did back in 2012 when “whatever it takes” sent the single currency from 1.23 to 1.36 over the ensuing five months, something which isn’t necessarily desirable when you’re in the midst of global currency war and when you’re explicitly trying — as central bankers are prone to do — to stoke inflation.

Of course, in a world where more QE cowbell is the answer to everything we suppose having an excuse to print still more euros would be just fine with everyone and as we outlined last week, it’s perfectly ok if the ECB runs out of EGBs and SSA debt to buy because the lower limit problem is just as good an excuse as any to jump into corporate credit and if that turns out to be insufficient, Draghi can always go full-Kuroda and throw the ECB balance sheet behind the DAX, the CAC, and the IBEX. 

Here's a look at the positioning around Draghi's "pointless" bet:

 

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Sun, 04/19/2015 - 17:18 | 6009245 Q-Q-Q
Q-Q-Q's picture

Is this the same guy that squeals like a stuck pig when a girl climbs on his desk?

Draghi does jazz hands lol

Sun, 04/19/2015 - 17:26 | 6009268 HonkyShogun
HonkyShogun's picture

He probably piddled a bit also.

Sun, 04/19/2015 - 17:40 | 6009281 Thirst Mutilator
Thirst Mutilator's picture

Jew overlords tell Draghi to tell everyone... "MAKE MY DAY"...

 

There ~ fixed everything... Let the 'tit a tat' arguments commence, which, INEVITABLY will lead to Putin murdering baby embryos [in incubators] from MsCreant & Miffed Micro...

 

Whereby FS challenges that narrative & gets accused of being an 'anti semitic misyoginist'...

 

~~~

 

HEY ~ is there a good 'NBA or 'NHL' playoff game on the jew tube to make me forget about all this?

Sun, 04/19/2015 - 17:45 | 6009311 ZerOhead
ZerOhead's picture

EMU break-up resulting in the death of the euro would spell curtains for the NWOs quest for a global currency system and perhaps neoLiberism itself.

Go Greece! ...

Sun, 04/19/2015 - 17:47 | 6009318 knukles
knukles's picture

That's it.  Complain about "short sellers" like every other last looser ever did.
Strong image, Mario  
Watch out!  The cookie's gonna getcha!

Sun, 04/19/2015 - 17:57 | 6009342 Thirst Mutilator
Thirst Mutilator's picture

@knuck

 

Dude... This is just the start of it... [& I don't fucking care if you are with me on this or not]...

 

This is all an OPEN TICKET...

 

The OPEN TICKET, beyond everything else, & especially in the wake of the HILLARY 2016 candidacy... Is a CARTE BLANCHE for the likes of Ms Creant & Miffed Microbiology to come on here and drop their ideas...

 

I won't make a call about that just yet, but I will guarantee everyone that nobody is gonna get the 'nigger ride' [that they got in 'o8], or the 'jew ride' that everyone has gotten since 1913...

 

Y'all better come to PLAY...

 

Sun, 04/19/2015 - 18:08 | 6009362 tarabel
tarabel's picture

 

 

It's very sad to see people turn themselves into the very thing they profess to hate. Simple mirror images of their own rigid perceptions.

Sun, 04/19/2015 - 18:44 | 6009417 Pool Shark
Pool Shark's picture

 

 

And, just like Clint's .44 Magnum in the movie; Draghi's out of ammo...

 

Sun, 04/19/2015 - 18:58 | 6009444 flacon
flacon's picture

Draghi: "No Plan B!"

Sun, 04/19/2015 - 21:41 | 6009872 TheReplacement
TheReplacement's picture

Long but interesting:  https://www.youtube.com/watch?v=7qIhDdST27g&feature=youtu.be

Puts a whole new spin on Lincoln. 

Mon, 04/20/2015 - 04:39 | 6010372 Haus-Targaryen
Haus-Targaryen's picture

Dear Mario Draghi - 

This morning I took out a sizeable short position on the EUR vs AG.  My position is already covered. Please fuck yourself with turkey baster.

Sincerely,

The Noble House Targaryen      

Sun, 04/19/2015 - 18:14 | 6009370 nmewn
nmewn's picture

So lemme see if I got this straight, you turn a comment section on the effeminate Draghi trying to show he has some balls into a personal attack on two chicks who haven't even commented?

Sun, 04/19/2015 - 18:33 | 6009399 TeamDepends
TeamDepends's picture

He says, "@ knuck". Where does that "c" come from? COMMUNIST. He's been here for four hours and he's telling us which latrine we can use. AND, he is agitating our lady ZHers, who are few in number yet vital to the survival....

Sun, 04/19/2015 - 18:46 | 6009422 nmewn
nmewn's picture

Yeah, I saw the "c" but I kinda marked it off like I do when people address me as mnewn and all its variants...lol. Not sure which one of the ladies (or both) left a scratch on him but its kinda laughable to come barging through the saloon door with pistols drawn demanding someone meet you in the street that ain't there.

Especially when the ladies brothers are hanging out at the bar ;-)

Sun, 04/19/2015 - 19:08 | 6009464 Hulk
Hulk's picture

Me thinks alcohol may be involved here ...

Sun, 04/19/2015 - 19:13 | 6009476 nmewn
nmewn's picture

Yeah, I think so too, I'm giving him the benefit of the doubt on it but I'm watching him in the mirror behind the bar just in case.

He seemed agitated ;-)

Sun, 04/19/2015 - 17:49 | 6009322 nmewn
nmewn's picture

Zactly.

Sun, 04/19/2015 - 18:06 | 6009359 tarabel
tarabel's picture

 

 

Absolutely nothing could get the word "jew" off your mind. It's apparently tattooed on the inside of your eyelids so you can see evil jewish conspiracies even at night.

Because you like it that way.

Sun, 04/19/2015 - 19:55 | 6009556 Attitude_Check
Attitude_Check's picture

Hey you (Thirst Mutilator) are wrong (no surprise) I'm calling you a jerk.  Maybe worse, nothing like misdirection trolling to point agitated folks in the wrong direction.  Who's tool are you?

 

Don't waste bits claiming you are nobody's tool - that just makes you an idiot.

Sun, 04/19/2015 - 17:58 | 6009283 TeamDepends
TeamDepends's picture

Remember when Dirty Harry shoots the bad guy in the scro'? Draghi will be runnin' up those stairs, trying to escape....

Sun, 04/19/2015 - 17:28 | 6009271 JLee2027
JLee2027's picture

Just send a 21 year old girl to attack so he surrenders.

Sun, 04/19/2015 - 17:39 | 6009295 williambanzai7
williambanzai7's picture

Sun, 04/19/2015 - 17:46 | 6009316 nmewn
nmewn's picture

The EU Chippendales!...lol.

Sun, 04/19/2015 - 18:08 | 6009363 Burt Gummer
Burt Gummer's picture

Jim Rickards says a us recession will force euro short cover rally.

https://www.youtube.com/watch?v=j4wcC2szApI

Sun, 04/19/2015 - 22:24 | 6009987 the great rift
the great rift's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Sun, 04/19/2015 - 17:20 | 6009250 Sudden Debt
Sudden Debt's picture

Ehe... I have so much trust in the euro right now that all my money is in dollar equities for over 4 months right now.

0.8 here we come!

Sun, 04/19/2015 - 17:21 | 6009252 Uber Vandal
Uber Vandal's picture

Why does the phrase "When it becomes serious, you have to lie" come mind the moment I read this?

Sun, 04/19/2015 - 17:23 | 6009259 jubber
jubber's picture

this just as   Euro sceptic opposition leader Juha Sipila wins elections in Finland. LOL

Sun, 04/19/2015 - 17:25 | 6009264 ebworthen
ebworthen's picture

I'd like to go to Oktoberfest next Fall.

C'mon .80/$1.00 for the Euro!

Sun, 04/19/2015 - 17:27 | 6009269 Wolferl
Wolferl's picture

10 Euro for a beer. Still no bargain.

Sun, 04/19/2015 - 17:41 | 6009303 Sudden Debt
Sudden Debt's picture

For Americans, 0.8 for a euro is a nightmare on a export side. 

Sun, 04/19/2015 - 17:49 | 6009323 knukles
knukles's picture

We don't make anything to export, anyhow.

Sun, 04/19/2015 - 17:51 | 6009326 knukles
knukles's picture

Oh, sorry.  I forgot about bribes and campaign contributions moving offshore.  Big business.  My bad.

Sun, 04/19/2015 - 18:55 | 6009434 macholatte
macholatte's picture

 

USA makes really good bombs and other weapons (most components are imported) so plenty of opportunity to sell and exchange rate does not matter.

George Carlin - We Like War (2007)

https://www.youtube.com/watch?v=UaS2bRGS86c

 

Sun, 04/19/2015 - 20:34 | 6009693 yogibear
yogibear's picture

"We don't make anything to export, anyhow."

Sure we do. Debt and plenty of it and inflation because of Chinese pegging.

Sun, 04/19/2015 - 21:43 | 6009881 TheReplacement
TheReplacement's picture

We make lots of illegal immigrants (they were legal until the immigrated).  Word is they are having a hard time getting enough in euroland.  We would export some to them.

Mon, 04/20/2015 - 03:54 | 6010358 anonymice
anonymice's picture

From the NY TImes: ROME — Hundreds of people were feared dead on Sunday after a ship crowded with migrants capsized and sank in the Mediterranean, as the authorities described a grisly scene of bodies floating and submerging in the warm waters, with the majority of the dead apparently trapped in the ship at the bottom of the sea.  

Now, you might think an economic basket case like Greece is less popular. Not so:

Mytilene, Greece – The Greek island of Lesbos is being flooded by a rising tide of people seeking to illegally migrate to Europe from the nearby Turkish coast on just about anything that will float.

The euros have got illegal immigrants, just like everyone else. 

Sun, 04/19/2015 - 17:51 | 6009329 Welfare Tycoon
Welfare Tycoon's picture

Export side?

What export side?

The only thing that I can think of that America makes, manufactures, and exports anymore is war and global oppression.

Sun, 04/19/2015 - 19:23 | 6009496 Hulk
Hulk's picture

We can all become cheap drunks again !!!

Sun, 04/19/2015 - 21:44 | 6009885 TheReplacement
TheReplacement's picture

Brew your own.  You can -hic- be a drunk -hic- too.

Sun, 04/19/2015 - 17:25 | 6009266 Quinvarius
Quinvarius's picture

They can set exchange rates where ever they want.

Sun, 04/19/2015 - 17:30 | 6009274 Last of the Mid...
Last of the Middle Class's picture

Putin's a tad early on this. Give 'em another year or so then you can buy the wole fucking thing for 5 bil.

Sun, 04/19/2015 - 17:36 | 6009287 Winston Churchill
Winston Churchill's picture

Why overpay ?

Sun, 04/19/2015 - 17:34 | 6009284 kizell
kizell's picture

It is Indeed pointless in today's central planning financial worls.  I doubt we will ever see market corrections like we saw in 2008 ever again.  The central planners will never allow anything close to that to happen, and that includes currency devaluation.  All the major central bankers of the world will work together to keep the system has solvent as possible. 

People keep thinking there be some big drop in the market valuations in the near future,  but I think they are greatly mistaken.  The next correction will be in the form of physical war, trade war, or food wars or a combination of any.

Sun, 04/19/2015 - 17:41 | 6009305 Winston Churchill
Winston Churchill's picture

Unless CBs can print collateral, you are dead wrong.

All printing fiat does is make the collapse,when it comes, far worse.

Sun, 04/19/2015 - 18:23 | 6009382 kizell
kizell's picture

You completely missed my point.   Specifically,  on how the collapse will happen 

Sun, 04/19/2015 - 18:01 | 6009352 Crocodile
Crocodile's picture

We are already in a currency war, a race to zero value.  The trade war is already in play and next will be a hot war if history repeats itself and man's inherit nature prevails to the downward slide as it always does.

Sun, 04/19/2015 - 21:46 | 6009888 TheReplacement
TheReplacement's picture

Do not forget water war.  Do not confuse water war with water sports when googling using unsafe settings. 

Whitehouse.com approves this message.

Sun, 04/19/2015 - 17:36 | 6009289 pauhana
pauhana's picture

Oh, shit.  I can't help myself.  I'll take the other side of that.

Sun, 04/19/2015 - 17:40 | 6009298 mastersnark
mastersnark's picture

Let's play "guess the date Greeks go to bed with Euros in the bank and wake up to an account full of Neo-Drachmas, courtesy of a forced conversion." I'm in for May 1 as it'd would be appropriately symbolic with the current government.

Sun, 04/19/2015 - 17:58 | 6009343 Uber Vandal
Uber Vandal's picture

I remember my friends in the Netherlands telling me how it felt to go from Guilders to Euros.

They went to bed with X Guilders, and woke up with Y Euros, and found that the number of Euros was about 1/2 what they had in Guilders, but everything cost about twice as much.

Sun, 04/19/2015 - 19:05 | 6009460 Winston Churchill
Winston Churchill's picture

Any currency change is a great opportunity for fraud,

Sun, 04/19/2015 - 19:11 | 6009471 Stormtrooper
Stormtrooper's picture

How about the ones that went to bed with a lot of gold and woke up with a lot of gold.  How much did their lives change?

Sun, 04/19/2015 - 20:49 | 6009748 fremannx
fremannx's picture

France and Italy are about to wake up to the same problems...

 

http://www.globaldeflationnews.com/france-and-italy-are-the-next-causali...

Sun, 04/19/2015 - 17:55 | 6009299 buzzsaw99
buzzsaw99's picture

they're lining up in droves to suckle from draghi's euro nirple /s

Sun, 04/19/2015 - 17:42 | 6009308 orangegeek
orangegeek's picture

Euro won't be recovering any time soon

http://bullandbearmash.com/chart/euro-monthly-falls-4-percent-nirp-conti...

 

NIRP ensures Euro stays down.

Sun, 04/19/2015 - 17:51 | 6009327 Catalonia
Catalonia's picture

No femen girls today? GTFO

Sun, 04/19/2015 - 18:38 | 6009404 Arthur Schopenhauer
Arthur Schopenhauer's picture

Here's hoping Ms Witt will catch ole' Mario sneaking out his back door tomorrow.

Sun, 04/19/2015 - 17:59 | 6009347 i_call_you_my_base
i_call_you_my_base's picture

I don't understand how there is one euro left in greek banks.

Sun, 04/19/2015 - 18:16 | 6009372 Fun Facts
Fun Facts's picture

they call him faggy draghi

quite rightly

Sun, 04/19/2015 - 18:45 | 6009420 dragoneyes74
Sun, 04/19/2015 - 19:30 | 6009516 q99x2
q99x2's picture

He could have said they are going to eliminate banking and turn the economic system over to the open source community.

Sun, 04/19/2015 - 19:45 | 6009536 Goldilocks
Goldilocks's picture

The Beatles - Nowhere Man
http://www.youtube.com/watch?v=TGGphnDMVDI (2:34)

Sun, 04/19/2015 - 23:59 | 6009562 Salsipuedes
Salsipuedes's picture

So my smack dealer shows up and I tell him I'm done. Finished. I quit. No more. I|m gonna sue him and the Cocaine Import Agency for fucking me up in the first place. Criminal and civil court. The whole nine yards. So he murders my family and burns down my house. Lay down with dogs, you`re lucky if you èver get up again.

                                Tony, Reno

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