This page has been archived and commenting is disabled.

Did Nowotny Just Take The Market's Punchbowl Away?

Submitted by Tyler Durden on 02/27/2012 16:27 -0400

It should come as no surprise to readers as it has been long pointed out that the need (and expectation) for all "transitory" measures to become permanent and exponentially larger to maintain this mirage of sustainability, but comments from ECB's Nowotny just took the shine off the day as Gold, Oil, Financials, ES, and AAPL all dropped notably (pulling back to TSY's outperformance) as he strongly suggested this is it (via Bloomberg)...

NOWOTNY SAYS SMP IS MORE OR LESS ON HOLD
NOWOTNY SAYS 3-YEAR LOANS WILL NOT BECOME A REGULAR FEATURE
NOWOTNY SAYS NOT `CONVINCED' ABOUT CASE FOR HIGHER FIREWALL
NOWOTNY SAYS ECB HAS PROBLEM OF ADDICTED BANKS

Well of course it does, only instead of even contemplating methadone, the ECB keeps pumping banks to the gills full of heroin. Certainly the ending will be a happy one. What is notable is that the only thing the sham formerly known as the market even bothers to react to are promises of future liquidity or lack thereof.

- advertisements -

Mon, 02/27/2012 - 16:30 | 2201494 Gubbmint Cheese

market loves the news.. loves it

Mon, 02/27/2012 - 16:32 | 2201508 Careless Whisper

The Careless Whisper Afternoon News Update & Threadjacking

JD Power Survey: 10% Of Customers Left Big Banks In 2011

http://www.rawstory.com/rs/2012/02/27/nearly-10-percent-of-customers-switch-banks-in-2011/

Venezula & China Partner To Develop Gold Mine In El Dorado; Locals Say Its Cursed

http://www.reuters.com/article/2012/02/24/venezuela-gold-idUSL2E8DOBTT20120224

Stratfor Agents Have A Sense Of Humor; Hacked "Glossary" Released

http://www.observer.com/2012/02/anonymous-wikileaks-stratfor-leak-stratfors-glossary-may-be-huge-blow/

Thanks For The Bailout; Chrysler To Build Jeeps In Russia

http://www.detroitnews.com/article/20120227/AUTO0101/202270318/Fiat-build-Jeeps-Russian-factories?odyssey=mod|newswell|text|FRONTPAGE|p

Hooded Mexican Gunmen Hijack Bus In Puerta Vallarta; 22 American Tourists Robbed

http://latimesblogs.latimes.com/lanow/2012/02/carnival-suspends-jungle-tour-after-passengers-robbed-in-mexico.html

Report; CT Traffic Cops Tell Whites, Never Mind - Latinos Get Muchos Boletos

http://www.greenwichtime.com/news/article/Report-Minorities-more-likely-to-get-traffic-3363661.php

Houses In Beijing Required To Have Solar Water Heaters

http://english.cri.cn/6909/2012/02/26/189s683216.htm

Kids These Days; 5th Graders Put Rat Poison In Teachers Coffee; Transfered To Another School, No Charges

http://abclocal.go.com/kfsn/story?section=news/local&id=8557164

Ben & Jerry's New Flavor "Lin-Sanity" Contains Fortune Cookie; Issues Apology

http://insidescoopsf.sfgate.com/blog/2012/02/27/ben-jerrys-is-very-sorry-about-that-offensive-jeremy-lin-ice-cream-flavor/?tsp=1

AT&T Says It Can Change A Contract Without The Other Party (That's You) Agreeing; Judge Disagrees

http://www.washingtontimes.com/news/2012/feb/24/judge-awards-iphone-user-850-in-throttling-case/

VIDEO; Dems In Open GOP Primary States Urged To Vote Santorem

http://www.youtube.com/watch?v=9OXrnnmvdXg

Mon, 02/27/2012 - 16:40 | 2201535 EuroSovietSerf

The next time you see a headline like 'private investors to be screwed over and will get nothing repaid from Euro loans' you will know that that will motivate the market to RALLY!!!

Mon, 02/27/2012 - 16:31 | 2201499 JPM Hater001

NOWOTNY SAYS ECB HAS PROBLEM OF ADDICTED BANK"ERS"

There. Fixed.

Mon, 02/27/2012 - 16:38 | 2201525 TruthInSunshine

Addicted Banks?

Like in Amerika?

Banks queing up in long lines in dark alleys, arms covered in TARP/TALF/QE/Twist track marks, jonesing for their next hit.

"Hey man, I need some LSAP bad."

"It's dry right now. Rumor has it that Dudley and The Bernank are pushing real hard for it. Hang in there, and conserve your Twist as much as possible."

"Screw that noise. Where's full blown QE3? These mofu***s don't know what withdrawal is like!"

Mon, 02/27/2012 - 18:06 | 2201882 mendigo

gay Bankers On Acid

Mon, 02/27/2012 - 16:31 | 2201500 redpill

Have a beer, bitch

http://www.youtube.com/watch?feature=player_embedded&v=QZlv9Ekb9QA

Mon, 02/27/2012 - 16:32 | 2201503 PontifexMaximus

Nobrainer

Mon, 02/27/2012 - 16:32 | 2201505 taniquetil

*NOWOTNY SAYS ECB HAS PROBLEM OF ADDICTED BANKS

We need to wean the banksters off of the liquid hopium.

They're going to be having the DTs for years when this finally happens.

Mon, 02/27/2012 - 16:32 | 2201506 vote_libertaria...

I saw oil blip down...stocks unchanged.

Mon, 02/27/2012 - 16:32 | 2201509 BlandJoe24

What effect if any do you guys think LTRO2 annoucement will have on EURUSD?

Mon, 02/27/2012 - 16:32 | 2201510 slewie the pi-rat

we call them zombies

Mon, 02/27/2012 - 17:56 | 2201659 slewie the pi-rat

i think novvo may have tossed a toaster into the punchbowl

and it wasn't his unplugged audition, either

so wtf is a SMP?

Open Europe blog: The ECB's SMP rationaleThere are many questions surrounding the ECB’s decision to purchase Italian and Spanish debt under its Securities Markets Programme (SMP), but one that hasn’t ...openeuropeblog.blogspot.com/2011/08/ecbs-smp-rationale.html - Cached

is this guy just saying this after a 2-martini supper following the blunderburgher vote, earlier? "more or less on hold"? does this mean it just ain't worth it? or that these bonds are doing so much better than anyone dreamed, so the ECB's action is no longer necessary?

NOWOTNY SAYS SMP IS MORE OR LESS ON HOLD
NOWOTNY SAYS 3-YEAR LOANS WILL NOT BECOME A REGULAR FEATURE

is this the LTR0? some other swap program?

NOWOTNY SAYS NOT `CONVINCED' ABOUT CASE FOR HIGHER FIREWALL~~~well, shit! curiouser, indeed! why, it seems like just this morning the G20 refused to fund the IMF without a higher EU firewall... could there be a "political" rift in banksterville?

NOWOTNY SAYS ECB HAS PROBLEM OF ADDICTED BANKS i think this is the "rosetta stone" of this projectile cloud. this is not good, and really hasn't been uttered heretofore above a whisper in polite company, especially with children, servants, or debtor-slaves present

slewie thanslation: the LTR0 looks like it's coming in $ 100-300 B euro and novvo is trying to counteract the 'euphoria' coming out of germany about the EU finances?

i mean, when the banksters start sounding like nigelFarage, can we say: houston! we haaave a problemo, BiCheZ?

is there a tiny chance that the banksters don't want more "money" right now, b/c they are just gonna lost it all on default swaps? anyway? what the hell! go tits up, then take the money? maybe they don't want to hypothecate all the "income" they'll earn when their bonds crash? are those debits and credits acting up, again?

very entertaining guy, tho! let's give him a hand! 4 bullet points and still incomprehensible! but it sounds like this is it! L0L!!! trust me!

Mon, 02/27/2012 - 16:33 | 2201511 Tsunami Effect

Don't we get it by now? It is a game of chicken between the ECB and the FED. They float rumors about not doing this or that, and Benny fires back with his "tools."

Testing the waters for the FED to backstop their Trillions of LTRO to come...

Mon, 02/27/2012 - 16:33 | 2201513 Theta_Burn

This was biggest correction to expect for the week...

Carry on

Mon, 02/27/2012 - 16:35 | 2201517 PontifexMaximus

Right on

Mon, 02/27/2012 - 16:33 | 2201514 monopoly

And this from WSJ:

bankruptcy Protection

Chip maker Elpida Memory filed for bankruptcy protection, in the largest corporate failure among Japan's manufacturers since the end of World War II.

Sure glad we are "decoupled" from the rest of the planet. Kinda gives ya that warm and fuzzy feeling.

Mon, 02/27/2012 - 21:27 | 2202322 slaughterer

Well, well, well, Japan approaching the firing squad. Nice.

Mon, 02/27/2012 - 16:34 | 2201516 FL_Conservative

Looks more like he dropped a turd in that punchbowl.

Mon, 02/27/2012 - 16:35 | 2201522 Jacque Itch

Who the flock is Novotny? Da Boyz haven't gotten to him yet. He will be singing a different tune after some "keynesian water boarding".

Bullish!

Mon, 02/27/2012 - 16:35 | 2201523 Boilermaker

Well, who cares? The Fed will just e-print more and slam it into equities.

If you haven't figured that out yet, then you're a f'ing moron.

What? We need to repeat this astonishment daily for the next 1,000 or so trading days before we come to the conclusion that it's completely rigged?

Mon, 02/27/2012 - 21:07 | 2202290 mendigo

yes I am starting to think all this venting about the bankers is a distraction from what is really important on the horizon everyone is going to be taking an order of magnitude paycut or reduction in standard of living. so if you are recievie tens of millions of dollars then that's going to hurt - if your pulling down 100k hoes it going to feel. you will start having to cut corners then you will start falling behind then you may lose the house then you can't send your kids to colledge and you will struggle to pay medical bills and wince at rising food prices. poor dumb bankers

Mon, 02/27/2012 - 16:35 | 2201524 Al Huxley

Nowotny can say whatever the fuck he wants to, the printing will continue, because the alternative (make the banks eat the losses for their bad loans) will never be acceptable. I'm just amazed anybody believes him.

Mon, 02/27/2012 - 16:37 | 2201529 gjp

Nobody believes a thing these people say. Actions speak louder than words and actions are screaming out that there is no 'go back' button on the central banker tool set. Bankers will buy with impunity.

Mon, 02/27/2012 - 16:38 | 2201531 indianajohns04

What Vix future is being used?

Mon, 02/27/2012 - 16:40 | 2201534 Everybodys All ...

I'm convinced the only way this market will go down is in a full blown crash. Someone is going to have to put the fear of god into the PPT to get them to the sideline and I don't see it happening any other way.

Mon, 02/27/2012 - 16:41 | 2201541 lolmao500