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Art Cashin On Draghi Leaving A Hole In J-Hole

Tyler Durden's picture





 

With economies faltering fast; ministers to cajole; and 'promised' plans going pear-shaped by the second; is it any wonder that Mario is not popping across the pond for some R&R at Bernanke's J-Hole. As the ever-avuncular Art Cashin notes, however, Mario Draghi's withdrawl as a speaker at Jackson Hole is logical and was almost inevitable as "you don't go to your best friend's daughter's wedding and upstage him at the event." One other factor that UBS's top-man notes is next week's ECB meeting - Draghi dare not say something that might complicate negotiations within the ECB (whose statement will not be postponeable).

 

Via UBS' Art Cashin,

Draghi Defers – ECB head, Mario Draghi, has withdrawn as a speaker at Jackson Hole. That is logical and almost inevitable.

 

As I told Bob Pisani yesterday in our daily CNBC website interview, Draghi would have been gagged by circumstances and politics. He could not afford to outshine Bernanke.

 

Jackson Hole is primarily a Fed/Bernanke event. As I noted to Becky Quick this morning, you don't go to your best friend's daughter's wedding and upstage him at the event. So that left Draghi in a position to be dry, professorial even purposely boring, lest he steal the spotlight from the host.

 

But, on the other hand, the world has been waiting for weeks to get details behind his assertion that he would "do what is necessary. And it will be enough". A vacuous speech wouldn't do, either.

 

That made Draghi's Jackson Hole position untenable. He dare not steal the spotlight but he could not be bland and vague. So he withdrew. 

 

One other factor is next week's ECB meeting. Draghi dare not say something that might complicate negotiations within the ECB (whose statement will not be postponeable).

 

Despite the clear motivation of Draghi to withdrew and avoid unnecessary complications, markets are looking for conspiracies. On the announcement, the Euro and EU markets spiked a bit. The theory behind that spike is too complicated to explain in this space.

 


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Tue, 08/28/2012 - 09:56 | Link to Comment bankonthebust
bankonthebust's picture

There is nothing he can say or do.

Tue, 08/28/2012 - 09:59 | Link to Comment SilverTree
SilverTree's picture

PRINT OR DIE.

Tue, 08/28/2012 - 10:07 | Link to Comment LongSoupLine
LongSoupLine's picture

well, there's alot he can say.  however, you are correct regarding the "do" part.

Tue, 08/28/2012 - 10:37 | Link to Comment Doubleguns
Doubleguns's picture

He could send Berlusconi in his place. THAT would be entertaining.

Tue, 08/28/2012 - 16:52 | Link to Comment Catflappo
Catflappo's picture

Is Art Cashin ever anything other than "ever avuncular"?

Tue, 08/28/2012 - 09:56 | Link to Comment Cunnial
Cunnial's picture

A more fitting title: J-hole without a-hole Draghi.

Tue, 08/28/2012 - 10:10 | Link to Comment Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Don't worry Cunnial, there will be plenty of A-Holes there.

Tue, 08/28/2012 - 10:31 | Link to Comment LeisureSmith
LeisureSmith's picture

A-Holes at J-Hole make O-faces.

Tue, 08/28/2012 - 09:58 | Link to Comment Falkor
Falkor's picture

Read my absent lips!

Tue, 08/28/2012 - 10:01 | Link to Comment Too Big 2
Too Big 2's picture

Draghi can't possibly have anything better to add to his grand statement of "We'll do whatever it takes!" as this would entail answering questions about how and when..... I hate it when the people want details.

Tue, 08/28/2012 - 10:03 | Link to Comment the 300000000th...
the 300000000th percent's picture

one less sock puppet at the puppet show

 

Tue, 08/28/2012 - 10:05 | Link to Comment spekulatn
spekulatn's picture

Well done ZH!

 


Art Cashin On Draghi Leaving A Hole In J-Hole

 

Tue, 08/28/2012 - 10:04 | Link to Comment LongSoupLine
LongSoupLine's picture

Jackson Hole?  lets just call it what it is..."The Goldman Sachs reunion and political boondoggle"

Tue, 08/28/2012 - 10:17 | Link to Comment ElvisDog
ElvisDog's picture

Is it too much to ask for a drunk picture of Bernanke like that one of Krugman that was circulating a while back?

Tue, 08/28/2012 - 10:06 | Link to Comment Dr. Engali
Dr. Engali's picture

What in the hell does wall street need analysts any longer for? Not that they weren't a joke in the first place. But if the whole market rises or falls on the words of one man why waste the money?

Tue, 08/28/2012 - 10:08 | Link to Comment francis_sawyer
francis_sawyer's picture

Draghi & Bernanke plan another get together later this summer...

~~~

http://www.youtube.com/watch?v=TKmJM_Fc0GM

 

Tue, 08/28/2012 - 10:09 | Link to Comment lsbumblebee
lsbumblebee's picture

Art's the Rona Barrett of the financial scene.

Tue, 08/28/2012 - 10:09 | Link to Comment Shizzmoney
Shizzmoney's picture

Oh, there's are plenty of A-Holes in J-Hole, alright.

Tue, 08/28/2012 - 10:11 | Link to Comment Robslob
Robslob's picture

I need only say this once:

UNTIL EVERY WRONG MOVE POSSIBLE HAS BEEN EXHAUSTED ONLY THEN WILL CENTRAL BANKS AND GOVERNMENTS BEGIN TO EXPLORE DOING WHAT IS RIGHT

Simply because there will be no more wrong moves left to make...

Tue, 08/28/2012 - 10:19 | Link to Comment ElvisDog
ElvisDog's picture

You silly goose, Central Banks will never, ever willingly do what is right. They will keep trying to support the current system, in which they are the overlords, until it collapses. At that point, they and our political leaders will say "no one could have forseen this unexpected event" and "it would have been much worse without our previous stimulus programs".

Tue, 08/28/2012 - 10:12 | Link to Comment spanish inquisition
spanish inquisition's picture

All the best talented dancing boys are in Tampa for the RNC. Gonna have to look to each other if they feel the need to "foam the runway".

Tue, 08/28/2012 - 10:29 | Link to Comment irie1029
irie1029's picture

Hmm sorta ike Ron Paul at RNC.. Everyone get in line. 

Tue, 08/28/2012 - 10:35 | Link to Comment Hype Alert
Hype Alert's picture

I still think an analysis of the Weimar Republic and Zimbabwe stock markets for best performing sectors is the only thing we need to look at.  This market is going up on printing alone and those are our best two proven examples that demonstrate what we are experiencing.

Tue, 08/28/2012 - 10:52 | Link to Comment mark mchugh
mark mchugh's picture

Of course, maybe the idea that the fate of the world hinges on what a couple of MIT PhD's have to say tells me all I need to know.

 

(We are so fucked)

Tue, 08/28/2012 - 11:09 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

I beg to differ, there will be no shortage of "A-holes" at the gathering in Wyoming.

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