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Bundesbank Pulls Cloud Nein From Under Hollande, Draghi
Minutes ago French socialist president Hollande once again climbed on top of Cloud Nine, fully hopeful that Draghi's bluff would be enough:
- HOLLANDE CITES `STRONG WORDS' BY ECB'S DRAGHI ON EURO
- HOLLANDE SAYS ALL WILL BE DONE TO `DEFEND, PRESERVE' EURO
This led to a brief spike in the EURUSD until moments later, CNBC's Steve Liesman, by way of the Bundesbank, just converted Cloud Nine into Cloud Nein, which in turn was promptly pulled from under Hollande:
- BUNDESBANK TELLS LIESMAN MONETARY POLICY SHOULD FOCUS SOLELY ON PRICE STABILITY, STATES NEED FISCAL INTERVENTION
This means the Bundesbank does not give its blessing to SMP reactivation, and does not all "all" to be done to defend the Euroe. And with that the German response to Draghi's bluff is complete, just as predicted. Check to Mario who is suddenly boxed in a very big corner.
The market response is immediate:
- SPANISH 10-YEAR BONDS ERASE ADVANCE; LEAVES YIELD AT 6.62%.
And this latest headline is certainly not going to help:
- GERMAN SAVINGS BANKS GROUP REJECTS BANK LICENSE FOR ESM
There goes the crutch that led the EURUSD rise last week on Ewald Nowotny's Wednesday rumor.
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all will be done to preserve euro: ask germany to leave so the ECB can print, print print.
+100 if I could
European leaders are having a grand time fooling the rest of the world, especially Americans ... They finally learned to copy the American 'two party' scam on a Europe-wide level
This 'conflict' between Draghi and the Germans, is like Romney and Obama pretending to be in conflict, in America's fake 'two-party system' owned by Wall Street
Draghi is expressing the medium-term view of what will happen, during possibly September - October ... the Germans are expressing the short-term view, push down the euro and keep German exports pumping, and keeping Germans happy.
In fact the Germans are in a political box as much as Draghi ... the Germans are constricted as to what they can say out loud, but they see the writing on the wall.
It is too late for Germany, too, and the German elite knows that. Euro-zone implosion means German bank implosion.
The German 'we are hard money' show, is just that, a show ... after a likely 'systemic crisis' episode in the next few weeks or months - Greek exiting the euro a good candidate, leading to a 'surprise' sudden near-collapse of the whole euro-zone banking system - Germans will 'oh so reluctantly' agree to print and inflate, to 'save Europe'. Already in the cards.
As Jim Sinclair said years ago: 'QE to infinity ... here, there and everywhere'
+ 1000
When you said Draghi had the cloud pulled from underneath him I envisioned the look on Wily Coyote's face when he realized the Roadrunner pulled the bottom from underneath him too.
Classic look- Just like Super Mario's facial expressions... Very classic indeed.
Hollande c'est un idiot sans nul doute.
sans aucun doute, mon vieux.
WTF? Major European banks now directly address LIESman??
WTF indeed.
+1
I'm kinda surprised that Liesman didn't just get all bent out of shape and tell them that they have to print free moniez.
You'll all be glad to know the conservation status of the Australian Black Swan:
http://en.wikipedia.org/wiki/Black_Swan
''Least Concern"
No threat of extinction, or significant decline in population has been identified with this numerous and widespread bird
Lots more coming....
Geithner and Obama spending "massive amounts of time on EZ". There will be no large state debt write-offs and no large bank failures. So even if both entites are insolvent, fucking Geithner has decided they are not.
Ironic that Buba is correct. Just because the US is pretending that monetary policy is a panacea, doesn't mean the ECB should follow suit (also if Geithner urges one solution over all others, one should know that solution is WRONG).
When world recouples with gravity the skid marks are going to go from here to the moon.
http://investmentwatchblog.com/breaking-eu-is-investigating-ecb-president-draghi
This was covered on ZeroHedge yesterday ... as one might well expect ...
http://www.zerohedge.com/news/eu-ombudsman-probe-mario-draghis-conflicts...
Puleeze. He could drink baby blood live on TV and nothing would be done about it.
It's a shame there's bugger all retail left in the market now, this would have prompted more of a sell off than we'll probably get today (I wouldn't be surprised to see the market end UP on the day...sigh).
DavidC
Oh, there are some real people in there. They just have no incentive to sell, what with all the price fixing and such. Why should they?
Nein of Bundesbank will not kiill euro.
Mario Draghi will not save Euro.
Follow Mario Monti's tour. He is not bluffing.
Can you start to name some of your people not Mario, please!
"HOLLANDE CITES `STRONG WORDS' BY ECB'S DRAGHI ON EURO"
interpretation: Hollande cites "strong, broken WIND by ECB DRAGHI"
What to expect this week & rest of 2012 http://www.traddr.com/profiles/blogs/technical-update-s-p-what-to-expect-this-week-and-the-rest-of
Hollande, Draghi, Obama... they all blow lies out of their asses and expect the sheep to think it is Chanel #5.
The ESM doesn't need a bank licence at all to act like a bank. Maybe you guys should actually read the ESM contract, so you know hat you are blogging and discussing about?
Article 32, clause 9 of the ESM:
The ESM shall be exempted from any requirement to be authorised or licensed as a credit institution, investment services provider or other authorised licensed or regulated entity under the laws of each ESM Member.
Got it now?
Germany WANTS europe in a mess!
http://www.germanywatch.blogspot.co.uk/2012/07/updates-few-good-germans.html
In the end, the final determination will not be made by pronouncements by elected or appointed polititians ,or even direction of equities or bond interest rates. It will be some insignificant bank in Austria, Serbia , Australia or Peoria that will intstigate a financial wave of reality that no one will be able to stop. Ben will finally be speachless.
And price stability ain't 2% inflation, it's 0% inflation. Something which all those ``economic PHD`` hacks should get through their thick heads.
Tyler give it up - the Germans cannot afford to see the Euro crater - YET - they aren't short enough. This market is going WAY higher so you all had better cover.
"The Swallow" say nein to bailout fund. Why should Gernmany bailout Greece/Spain's over 50% under 25 unemployment rate?
http://confoundedinterest.wordpress.com/2012/07/31/schauble-says-nein-to...
Haha, the Cloud Nein pun made me laugh. ^_^
But EUR/USD over 1.23, Italian yields below 6%: the market still believes Draghi will pull off the stunt he has promised?
I am astonished how long this has draghied on for, you would think by now the market would have sold off to a more realistic price level. There is no way Draghi can print with those pesky Germans constantly interfering. And yet the market continues to hope. I suppose it's because there really is no decent yield ANYWHERE, and so everyone may as well leave their money in stocks etc. If they sell everything, they have no option but go into USD. Sad state of affairs.
The City of Man
http://shutupnsing.wordpress.com/2012/07/31/the-city-of-man/