Analysts Respond To ECB's Toned Down Plan: "Priced In" And Details Still Lacking

Tyler Durden's picture

The first responses by the Wall Street sellside brigade to the ECB's "unlimited" yet somehow "sterilized", no longer rate capping thus unsterilized plan emerge and they are, in a word and as expected, unimpressed. Via Bloomberg:


  • “Already priced in the short end of Italy and Spain,” says rates strategist Alessandro Giansanti in an interview.
  • Says mkt is waiting for further details regarding:
    • Explicit maturities of purchases
    • When the bond purchase program will begin
    • Which country will ask for support
    • How the EFSF/ESM will be financed


  • The absence of key details “will likely limit the mkt response,” writes rates strategist Richard McGuire in a client note
  • Says key details regarding conditionality are missing; these will determine whether Spain requests an aid program or is forced into one by the markets


  • This is broadly what markets were expecting, even if some in equity markets were hoping for unsterilized, Marc Ostwald says in email.
  • Unsterilized buying not an option given would be outright financing of state debt
  • Also some caution as story gives the outline of Draghi’s plan, doesn’t tell us what the various ECB committees have advised and how the rest of the council will react

* * *

Naturally, the only thing that matters, which is whether the ECB's actions will do anything to restore Spanish depositors confidence and halt the insiduous and accelerating Spanish bank run, is untouched - if the Spanish bank outflows persist, all of the above will be for naught.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Jim in MN's picture

Beige response, bitchez!

GetZeeGold's picture



Tone it down hell.......crank that crap up!!!


Popo's picture

This whole "Sterilized" thing is clearly a scam.   The value of assets purchased and sold will absolutely not be equal.   And if they were, there would be no point. 

This announcement is either worthless or it is an admission that the plan is to commit large scale financial fraud at the highest levels of the financial system.    

It doesn't even make sense.   Planning to shuffle around assets and hoping to somehow arrive at a scenario in which Europe is not insolvent is either idiocy or fraud.  Pick one.

slaughterer's picture

This new program is worse than the old SMP because it has conditionality attached.  Sorry, this is not a "whatever it takes"  "you can believe me" type response.   Expect CTRL + VOL.

ebworthen's picture

"Priced in" my ass.

GetZeeGold's picture



You can't believe the crap they can pull out of their ass.


EscapeKey's picture

All negative news are always priced in.

Cognitive Dissonance's picture

At this point it is no longer about keeping the helium market balloon rising. Rather it is all about plugging the new holes to keep it from plunging.

Going down?

To be fair, it seems the market has been able to work off its overbought condition by moving sideways for the last three weeks. Of course overbought is a relative condition. It all depends upon the ECB and FED over the next 7 business days.

Cdad's picture

To the question of "going down?", all it will take is one big bank selling a few decent sized blocks of a popular stock...and your question then will be forthrightly answered.

Cognitive Dissonance's picture

Brother Cdad. Nice (new) avatar.

My older eyes are having trouble discerning what it is that I'm seeing other than blotches of bright color. Care to expand?

<Lie to me if you have to. The powers-that-wanna-be seem to do so with impunity so I'm used to it. :)  >

Dr. Engali's picture

Looks to me like it's a rather colorful meteor.

Cdad's picture is Old Cdad gripping tightly to the meteor...of truth.  Impact is a foregone conclusion.  The only question is as to when and where...

Cognitive Dissonance's picture

That's what I thought. But one must always ask the artist for his/her interpretation......if only to be polite. :>)

Cdad's picture

It seems to me that Truth has touched down in several places on the Earth recently.  The revelation on Apple yesterday, as provided by Tyler, was a very significant instance of the Truth impacting.  Just how many people will rush to buy the iPhone 5 with the knowledge that the FBI has their unique device identifier plugged in to their systems?  Nice fascism.  

In China, the Truth has made impact, and there is a gaping hole in the ground where Global Growth once resided.

Last night, FedEx lit up the sky with it.

This morning, Truth impacted 8 weeks worth of hope and prayers in Europe.

One might say...there is a regular meteor shower now in progress...with only the dumbest and last algorithm yet unaware. 

fuu's picture

The Veritasiads.

SheepDog-One's picture

I can feel em out there Cdad, nervously petting the 'sell all' button to be the first that bails and runs for a lifeboat spot.

Cdad's picture

Indeed brother SheepDog...and all it will take is, like I said, a few nice block dumps...and the algo's will take it from there.  That is all we are waiting for now.

Cognitive Dissonance's picture

Sort of like..........if you live by the sword algo you die by the sword algo.

Cdad's picture

Eggssssssssactly!  And there are A LOT of very dumb algo's in the market today [GPOR, SBUX, AAPL, SPY, name but a few that I have observed this morning].

The short busses are lined up in front of the school, and the greater fools are climbing onboard.  And Cdad is hurtling towards Earth firmly clutching TRUTH!

LawsofPhysics's picture

Correct, welcome to the post-growth world.  Now go be productive, because the fucking paper-pushers (who have all that free money) certainly won't be creating anything of real value, they don't know how and as long as those paper-promises remain stacked on their desks, inflation will remain in check for a little while longer...   ...maybe january.

Winston Churchill's picture

I went way out on a limb three weeks ago calling the top.

Here I go again,NASDAPPLE will start the fall in September after no QE3 announced.

If the Israeli's do not strike Iran in the next two weeks causing it,that is.

centerline's picture

Of course the details are lacking.  Is about confidence.  Actual details would destroy confidence.

Sad state of affairs, isn't it?

Dr. Engali's picture

Priced in my ass. These market can't price aything in with this much manipulation.

LawsofPhysics's picture

Correct.  since moving away from a monetary system that had some level of real consequences for bad behavior  built-in, there has been no "market" and no real mechanism for true price discovery.

Cognitive Dissonance's picture

The same thinking can apply to PMs as well. Since there is so much manipulation in the PM market the assumption is that a rise is inevitable. However, how much upward pressure is there simply because of the downward pressure.

Meaning that each (manipulated negative) action creates an equal and opposite reaction. How much pent up PM buying is there simply because people see and fell the negative pressure?

BTW as a disclosure I have been buying PMs since 2002 so I am on the long side of the debate. But we always need to see all sides, not just the other side.

fonzannoon's picture

I am actually going to purposefully watch cnbc this morning to see that british twit Simon something who was screaming that Draghi saved the world see if he can remove his foot from his mouth.

Meesohaawnee's picture

and fex ex guides lower. BULLISH!

gjp's picture

Weak economic reports.  Fedex bellweather major neagative signal.  Lots of central bank jawboning but no action and more friction in the monetary greasing process.

But AMZN, APPL, teflon Nasdaq, and the insane healthy food bubble at 40x earnings just get crazier.  The more obvious the rot, the deeper the denial.

Orly's picture

In typical bankster style, they have drawn forward their demand that was due on Thursday.  They leaked the report to get one last ramp out of the Euro.

Now, we have to wait for the US NFP report on Thursday, which is going to be horrible...erm, I mean slightly good.  As Bruce Krasting predicts, any number above 100,00 jobs added will burst the bubble of the free-money mo-mos.  I would say that puts the market on extreme defense as one wouldn't expect the Fed to inject without global stock markets dropping at least twelve percent.

Sensing the desperation at play here and the fact that they're out of cards, it looks like it is on like Donkey Kong.  The days of reckoning are nigh and in force.  Finally.


SheepDog-One's picture

Theyve painted themselves into quite a corner here, got to keep the 'free money carrot' on a stick out there for Hope, while producing 'good news' as well. Cant have any stock market drop, yet desperately need fear and panic and everyones so trained numb thats basically impossible to accomplish. Well I dont envy any of em here.

RougeUnderwriter's picture

Question: So where do you park money now?


If the banks are interconnected, Money Markets could be one of the first to take a hit. Am I being forced into equities?

Life of Illusion's picture


What conditions,,gold

 “We don’t want to have the ECB just buy on the market, either in the primary or secondary market,” he said. “The ECB can do it only if there are certain conditionalities, if the countries are really doing their homework.”

The remarks are further evidence that Germany will support ECB President Mario Draghi’s plan to buy sovereign debt as a way to ease bond yields in countries such as Italy and Spain so long as governments sign up to strict conditions

machineh's picture

So if the hand-over-fist buying of PIIGS bonds is to be sterilized, what does the ECB sell to keep its total assets unchanged?

Is Draghi going to dump German, French and Dutch paper to drive UP their yields?

That should go over well in northern Europe! 


I am he as you are he as you are me
And we are all together
See how they run like PIIGS from a gun see how they fly
I'm crying

adr's picture

The world economy is now completely dependent on paper pushing. More "wealth" is generated through the trading of paper than actual production and labor. Unearned income dwarfs earned income over the last four years.

To me that looks like a system that can no longer carry its own weight. The upside down pyramid adding even more weight to the top.

Builder: Um sir, your foundation has cracked we can't build a fifth level to your house. In fact yourhouse wll probably crumble within a few days.

Wealthy idiot: You build it and you build it now. My neighbor has four stories and I won't be undone. I'm paying you to build so build.

vertexa's picture

Buy something and sell something else? HELL YES! 

European Union considers defunding Food Bank Programs
SheepDog-One's picture

Damn peasants and all their whining about food and shelter....fuk em! We've got multi billionaire banksters to worry about here!

agagshoes's picture

Today a large number of begin to question: just what model headset gives girl Burberry Outlet Online donned on her hearing? The answer is Monster beats by dr dre. Certain stylish headset whirlwind, however, is considerably more robust against you can envision. More celebrities and also elegant people almost all the swagger from the pavement in their vast beyond headsets. Also big business does not have predicted where their particular items may have grow to become so well known that Burberry Bags has fine right after the post game media Convention on sporting his enormous surpasses Business headset which is typically this individual designer sunglasses acquired.Considering that first introduced the Burberry Outlet the NFL continues to be linked to the Trend. The top quality is very useful; Nevertheless, large units a thought and perception to items where: first it really is hot; Next, a pair of headphones. Usually people would certainly acquire a thing that they did not need only to have not necessarily out there. People use headphones comprehensive in lifestyle; Anyway, hardly ever single person can acquire the Burberry Sale only to have not necessarily out there. Almost all the urgent need was to generate a "brand-name product" good idea of Trend. Initially identified huge some Grammy Awards success medical professional. Dre, just talking about how to generate a stylish Tom sunglasses headphone merchandise.

They eventually established dre beats in their particular aspires diamond hip hop group. Since Hip Hop & gangsta rap can be a crucial part of module handle Louboutin Men stylish tradition, there are many goods and also the rapper Hip Hop & gangsta rap tradition of buying goods in the us. It is an industry that is packed with robust community charm and also easily get specific youth to participate and acquire captivated. Just like cars Cheap Christian Louboutin, high end brand name, according to the big kick off point large introduced the original headphones: Business, and also stored online strategy about the Trend. In the view of medical professional. Reputation in the US, but the updated Business headsets shortly thereafter acquired significant review. And also because of their outstanding top quality and also built-in amplifier headphone Setup, big business can only exceed that of push ipod touch: the used Ipod for us. Great reward, Christian Louboutin Outlet bought mass and also a growing number of highly successful people come to pick the supra shoes exceed Business since their particular business.It's not because of the fact of what Cheap Solo HD as if any other brand name in top quality-factor, but the Business continues to be labeled alone Trend given that start. About these kind of very successful people, they should keep themselves cool constantly and so they need a pair of headphones for high quality too; Therefore, grow much beyond business headsets to be their particular preferences. Being a classy items, which must have some stylish and also special physical appearance. Because the first merchandise of great headset, head-use Sort headphones arrive thecheap north face jackets all over the world.At the forefront of the extremely white dr dre tour headphones can possibly be around for split directly in a couple of sorts: you are a high-end professional level earphones that can be applied to a large extent by people producing an job in audio, just like brand name AKG high-end control headphones; another form is the most affordable high-end headphones for top quality, what fanciers Follow, such as Sennheiser HD800. Beyond almost all uncertainty Christian Louboutin Heels, frequent use such goods characteristic — — — amazing traditional but still undesirable to keep.