Mario Draghi Hints Trump Will Be Responsible For The Next Financial Crisis

Tyler Durden's picture

Earlier today, the portfolio manager of the world's biggest hedge fund, Mario Draghi, whose total assets held by the European Central Bank's special situations fund amount to €3.72 trillion, or 36% of the eurozone's  GDP... 

... said that it is not his gargantuan "portfolio", or the roughly $14 trillion in global central bank liquidity sloshing around (as lamented earlier today by Bill Gross) that would be the catalyst for the next market crash, but rather that it was Donald Trump's deregulation of the banking industry that has "sown the seeds of the next financial crisis."

Cited by Reuters, Draghi argued that lax regulation had been a key cause of the global financial crisis a decade ago, and said the idea of easing bank rules was not just worrying but potentially dangerous, threatening the relative stability that has supported the slow but steady recovery.

"The last thing we need at this point in time is the relaxation of regulation," Draghi told the European Parliament's committee on economic affairs in Brussels. "The idea of repeating the conditions that were in place before the crisis is something that is very worrisome."

What Draghi did not mention is that it was his former co-workers at Goldman Sachs - in this case led by Trump's chief economic advisor and former Goldman COO Gary Cohn - who forced this particular ""deregulation" precisely with the intention of sowing the seeds of the next financial crisis, so that when the next Lehman happens, it will be yet another global taxpayer-funded bail out of the financial system, allowing banks to sweep massive accumulated bad books under the rug a la 2008, and come out clean once again, merely at the expense of the "next Lehman", whoever that may be.

Better yet, they will have Trump to blame for all of it.

Draghi's words are among the strongest reactions yet from Europe since U.S. President Donald Trump ordered a review of banking rules with the implicit aim of loosening them. That raises the prospect of the United States pulling out of some international cooperation efforts.

And just as we predicted on the day Trump was elected, Draghi has now defined who the scapegoat for the next crisis will be - the man who has been in charge for less than a month - while absolving Trump's predecessor Barack Obama of all economic, monetary and financial sins.

To be sure, it had to be a collective effort, and so other central bankers - who know that without someone to blame the next crash on, it will be their heads (metaphorically we hope) - chimed in:

Andreas Dombret, a member of the board of Germany's powerful central bank, the Bundesbank, said that reversing or weakening regulations all at once would be a "big mistake", because it would increase the chance of another financial crisis. "That is why I see a possible lowering of regulatory requirements in the U.S., which is under discussion, critically," said Dombret, who is also a member of the Basel committee drafting new global banking rules.

The pile-on continued:

Roberto Gualtieri, chairman of the European Parliament's economic and monetary affairs committee, also criticized Trump. "Some first concrete confirmations of a new more unilateral policy stance by the new U.S. administration, including on sensitive financial markets regulatory issues, raise concerns and require both thorough reflection and action from the EU side," he told the committee.

Meanwhile, Draghi deflected accusations lobbed at him over the weekend by German finmin Schauble, who said not Germany, but the ECB and Mario Draghi, are responsible for the undervaluation of the euro:

Draghi rebuffed accusations by Trump's top trade adviser that Germany, the euro zone's biggest economy, is using a grossly undervalued currency to take advantage of the United States. He argued instead that economic weakness is the main reason for the weak euro.


Germany runs a massive trade surplus with the United States and Trump trade adviser Peter Navarro said it was now exploiting this to America's detriment, de facto accusing Berlin of currency manipulation. But Germany does not set monetary policy and has repeatedly complained that ECB policy is actually too easy, calling on Draghi to end its massive stimulus program.


"First and foremost: we are not currency manipulators." Draghi said. "Second, our monetary policies reflect the diverse state of the (economic) cycle of the euro zone and the United States." "The single market would not survive with continuous competitive devaluations," Draghi said.

But the ECB chief also said no policy tightening was coming as growth was still weak and faced with risks, while the inflation spike is still temporary, all indicating that monetary support is still needed. In other words, Trump may have sown the seeds of the next crisis, but the ECB will continue buying up roughly 0.3% of the outstanding stock of European corporate debt held in private hands every week, not to mention gradually nationalizing Europe's entire sovereign debt market.

"Our monetary policy strategy prescribes that we should not react to individual data points and short-lived increases in inflation," Draghi said. "We therefore continue to look through changes in (harmonized) inflation if we believe they do not durably affect the medium-term outlook for price stability."

Good thing the ECB is not "data-dependent" then.

* * *

It remains unclear if this jawboning between Draghi and Trump, who are both effectively manipulated and played by the same bank, Goldman Sachs, is just a charade, or if this is setting up as a preamble to Trump accusing the ECB of manipulating the euro, perhaps preceding a similar crackdown on the Fed itself, as the Vice Chair of the Senate Financial Services committee Patrick McHenry hinted last week when he said that "It is incumbent upon all regulators to support the U.S. economy, and scrutinize international agreements that are killing American jobs."

If, indeed, this is nothing more than theater, we hope Trump is aware that his support level will vaporize should the S&P proceed to crash, something which many say is long overdue after the S&P never even had even one bear market for the duration of Barack Obama's tenure.

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new game's picture

blame it on trump, lol.

predictable behavior...

thesonandheir's picture

Yep, as many predicted teh Don is being set up by the elites.



bobbbny's picture

The parade of assholes who got us into this shit just never ends.

Why is nobody calling these psychopaths out?

847328_3527's picture

Sorry Dragon, the disaster was created by Bush and the kenyan, bin Bama. Trump was handed the shit pie by them and will do his best to correct it.


So don't be another Euro-Shithead.

mtl4's picture

Really?! you created negaive bond rates and Trump is the one that will bring it all down?!  Best tactic is always to blame your opponent for your own shortcomings.......not sure how these folks can even look themselves in the mirror honestly. 

NoDebt's picture

So what they're admitting is that the "Big Reset" is coming?  OK.  Blame it on whoever you want so long as it happens.  'Bout fucking time we get around to finishing the business that was started 8 years ago.


FreezeThese's picture
FreezeThese (not verified) NoDebt Feb 6, 2017 2:45 PM

Preaching to the choir Mario ... buy some gold and seal the bomb shelter

Chris Dakota's picture
Chris Dakota (not verified) FreezeThese Feb 6, 2017 2:48 PM

Good you just gave him permission to fix it by ENDING THE FED!

wildbad's picture

well, we'ver been wondering how exactly they were planning to finesse this one for years.

now we know.

no finesse, just, "He did it!".

C'mon you dry fuck, Draghi. is that the best you tits up fuckers can come up with? after trillions in QE and corporate buybacks and secret corporate bailouts and the mis-management of sovereign debt.....

its his fault? really?


cheka's picture

let me translate the skype speech

financial crisis = slight reduction in HOLIDAY bonus pool.  instead of 31 billion, 30.5 billion

Manthong's picture

Geezus, a criminal Goldman Dago looking to dodge the blame for his criminal counterfeiting and manipulation.  

 Here's a thought for a solution…

rmopf2010's picture





World economy is on PALLIATIVE care since 2008 !!!!

Draghi's "Whatever it Takes " QE and NIRP just gave the euthanasia/mercy shot into the economy






rmopf2010's picture

Wait Vlad is not guilty as well ?????

come on Mr. Dragui please find a guilt to adress to Mr Vlad

Today is raining maybe is Trump fault


Makes me sick these NWO RETARDS I wouldn't buy a USED CAR from these Fucktards !!!!!!

metastar's picture

It's got to be nice to be able to print as much money as you want to buy shit. It doesn't matter that the price is so god damn high that nobody else wants to buy. You've got infinite supply.

It's good to be king, but even better to be a central fucking bank!

chubbar's picture

If Trumps support drops with the S&P dropping, I suspect it's because the average joe doesn't understand that this reset is baked in the cake. Trump can't fix this without a crash but he does need support so I hope people wake up to the facts.

walküre's picture

the ship won't go down without a major war.

at least draw the proper conclusions

rubiconsolutions's picture

'Bout fucking time we get around to finishing the business that was started 8 years ago.

Yeah, except it was started 104 years ago in 1913.

Life of Illusion's picture



HOW ABOUT USING  Financial Stability Oversight Council AND LIQUIDATE ASSETS!

cheka's picture

what's the holdup on eurobonds?  been waiting for years...

GUS100CORRINA's picture


This guy is a DESPOT with a REPROBATE MIND like the rest of the CBs.

Life of Illusion's picture


When you hear FINANCIAL STABILITY roll from his lips he will push the print button!

wildbad's picture

wow looks like i plaigerized you with my rant below. it was telepathy

wildbad's picture

wow - he's really got it goin on

Countrybunkererd's picture

they don't look in mirrors, they have no reflection.

Antifaschistische's picture

Everyone blaming Trump for the economic meltdown = after 40 years, even the smart guys don't think we can kick the can that much, let's blame the new guy!!

ejmoosa's picture

For more than 2 years all the basic indicators pointed to a slowing US economy and a recession on the horizon.

And now that we are there, it's Trump's fault?

Not even close.

But the policies that Trump has said they are working on do have the potential to get the US out of the recovery first, while the rest of the world get's left behind in neutral or reverse.

And I can live with that.

Everyman's picture

No shit.  Hank Paulsen, Jamie Dimon, Blankfiend, Bernanke, Yellen, and now Dragi.  THOSE are the assholes that held the levers and "guided" this mess called an "economy" and "markerts". 

NOPE, not Trump's fault at all.  They will try to blame him.  I think more blame needs to go to those above and SOROS, before blaming Trump.  These other assholes were the meddlers and the "brain trust" with ZIRP/NIRP/ and the shit show they managed.

runningman18's picture

Brandon Smith predicted this half a year ago here on ZH.  I'm never second guessing that guy.  

GreatUncle's picture

Big difference though the smart guys have brainwashed snowflakes.

Trump got the deplorables :-) Who realise WTF has been going on.

However you want to call it, the last couple of decades is solely the responsibility of the globalists / liberals.


BennyBoy's picture


Yeah, it'll all be Trumps fault.

The repeal of Glass Steagall, ongoing GS and JPM frauds and the FED's inability to think will have nothing to do with it.

City_Of_Champyinz's picture

You have to at least appreciate the astounding level of arrogance these dipshit bankers/elitists display on a second-by-second basis...

walküre's picture

"The Don" is obviously just too preoccupied with himself to figure this out then?

Cog-dis runs deep around here.

Why don't we ask the real question?

Who is DJT? Who made him? Who paid him? Who owns his ass? I don't care for the MSM which is deliberately not zeroing in on DJT's background. They fight their little battles in the open which mean absolutely nothing. It's all a distraction. He's part of the machine. Another cog in the wheel.

BabaLooey's picture

Ah Mario.....

You're so full of SHIT I can smell your stink from HERE.....

you slimey fucker....

logicalman's picture

Looking more and more like The Donald was (s)elected to be the fall guy.

The upcoming train wreck has been decades in the making.

Only someone who is willingly blind-stupid-uninformed wouldn't see through this.

There aren't that many blind-stupid-uninformed people around, are there?


Captain Chlamydia's picture

Central Bank of EU manifest :

First, rig the System. Then, spend loads of other peoples money. Print some more money. Rig the system some more. Buy financial investments nobody wants. Disrupt the economic system, tilt the system some more, print more money.  As soon as the system starts to shake, blame Trump or anyone else who had zero to do with it. If nothing else, one can always blame the Russians. 

walküre's picture

What do you call someone who is walking straight into an oncoming train wreck?

Kirk2NCC1701's picture


"This Financial Crisis, like all those before them, are the principal making of the Globalist Bankers -- or 'Banksters', as most people on Main Street call them. If they are unable or unwilling to deal eith their oen mess, then id be happy to do it for them. Let me know."

Raffie's picture
Mario Draghi has been eating far to much rotten pasta to think clearly.

He just jumping on the George Soros express to destruction. Far to many finger prints on these issues to blame President Trump.

Willing to bet President Trump already has the low down on who did what so comes the day of blame he will say "Well, lets look at these reports and see who is involved"

lincolnsteffens's picture

Trump didn't plant the seeds he is just pissing a little water on them!

gmak's picture

We can all sleep nights, now. Draghi has found his scapegoat (Pay no attention to the 2.5 times Global GDP in debt that has been amassed with the instigation of Central Banks everywhere).

847328_3527's picture

Well, on the bright side, drahgi is intelligent enough not to join the Marxists and label Trump as a "racist and sexist."

ejmoosa's picture

Draghi still thinks that GDP can pay off the debt.  It cannot.

Only profits are available to pay off the principal and interest of the debt.

GreatUncle's picture

You ain't paying down principal ... you will be lucky to make interest payments in the end.

VWAndy's picture

 Classic sociopathic BS. As if ol Mario did not screw up everything long before Trump showed up.

Duc888's picture



That's the first thing that camew to my mind.  How can this fucking moron blame someone who just stepped into the game 2 weeks ago.



ArmaG3don's picture

Troubles Mr. Trump. What about Strong Dollar?