- advertisements -
Wow, just 0.96 trillion € of monetization every year. Price stabeleteeeeee!
20 bil./wk is quite a bit, no? The last failed Spanish auction only tried to raise 4 billion. The ECB could have bought the whole thing, and then done the same every day of the week.
What I'm guessing is that there is a hell of a lot more debt that is already floating out there which is causing insanity with their yields so them covering the new issuances wouldn't help much. But I'd be interested in hearing someone's explanation because it does seem like it would cover their new issuances so while it would be lipstick on a pig would it be enough to kick the crisis down the road a little bit longer.
The 20 bil/wk limit (i.e. target) applies to ECB meddling in the primary and secondary markets. When you see the PIIGS + FAAArce yields soaring, its the ECB that jumps in to the rescue. This capacity to rescue now has an upper limit....thats the "comprehend the significance of this news" TD's talking about
6 weeks until Xmas, i.e. €120 billion to go. They can buy a lot of Greek, Portugese, Spanish, and Irish bonds with that. They cannot buy a lot of Italian debt with it. Good-bye.
Okay. Let me see if I got this right. Bear with me now!
The ECB uses EU bonds it has purchased, with freashly minted Euros, from member countries as collateral. To issue new ECB bonds that it "lends" to the IMF so that the IMF may "lend" more money to EU countries who are insolvent, who sell more bonds back to the ECB so they can pretend that they are solvent?
I'm going back to bed. My head hurts!
Good job sorting this all out, although your inappropriate use of a period threw me and messed up the meaning.
Keep your eye on the pea no matter how many times they shuffle the shells.
20 bill./wk is more than enough to buy all new issues of PIIGS + F public debt:
PIIGS + F public debt = 5 Trill.
ave. maturity = 7 years = 364 weeks
ave. weekly issuance of PIIGS+F debt = 13.6 bill.
as a matter of fact, they don't even need to purhcase any of that in order to maintain PIIGS + F sov. bonds rates capped : just send a credible signal that they stand ready to purchase those quantities if rates go above the cap. Signal they are sending now...
So that's 1040 billion next year, eh?
I think someone just rang the bell. Did you hear it?
Risk is so ON!
They meet every 2 weeks to make new decisions.
Sure, this 20 billion weekly cap is the end of the monetization scheme /sarcasm
'We give the machines 15 minutes before they comprehend the significance of this news.'
It means we're in for a Merry Christmas this year doesn't it?
yep, sanity clause has some oil revs to recycle into EU debt.
There is also the unwritten cap at 7% yield for Italy 10Y
Might take 20-30 minutes for the machines to realize the significance of the story, Tyler. Some seriously dumb ass commodity traders are currently enjoying the joy joy, old rumor, complete farce bullshit bounce this morning, being bailed out on their momentum stupidity from yesterday again [and again and again]. Let's call it 25 minutes....mark...
capitalism is long gone
And it is time for us to exert moral hazard on those who perpetrated that policy.
I prefer to exert some Iron Maiden. Those poky things hurt more.
Don't look now, but oil is back over $100, that's bullish for discretionary spending.
People doin' a lot of driving today so... there's your causality.
Price of Molotov Cocktails is going through the roof.
THESE ARE THE NEO NAZIS (JENS WEIDMANN, JUERGEN STARK, YVES MERSCH, NETHERLANDS AND AUSTRIA) THAT THEY ARE DESTROYING THE EURO AREA AND CAN ULTIMATELY DESTROY THE ENTIRE WORLD...GET RID OF ALL THESE SUCKERS...
ey, is that you bunga. you want my money bitch?
Time to inject a Bird Flu variant into the population.
I was kinda partial to SARS
20Bx52W=1T QE3 via Eurozone.
benny/oblama buying spoo with money out of thin air but no worries they'll inflate those digits away, in fact one day after it's discovered what they did the U.S. will have made money on those trades.. half way to Weimar but still.. they are our future heros guys be nice.
Sounds like a target more than a limit.
80 billion a month?
brilliant. good one.
Wait a sec, the UK and US owe nothing to one another? You don't say.
Would you fuck me for $1,000,000?
How about $100
What do you think I am? A Whore?
We've already decided what you are, now we're negotiating the price!
The stupid dog stock market (futures traders) chases every offer to celebrate Spanish 10-year yields (currently 6.8%) spiking above Italian yields (currently 6.6%)
Europe is fixed again!
well it is Spain's turn to install a technocrat after all... need to exert a little pressure.
A lot of bulls were positioned for a breakout and Santa Clause rally (~80% of the trading community).
Now they are in the trap and desperate for any rumor/news to bail them out.
I saw some hedge fund manager on one of the channels with a recommendation to "play the Santa Claus rally by the book"
Why that's only 2.9 billion euros a day.
A monetization bargain!
The IMF is setting itself up to be the one world's Federal Reserve ... I wonder if everyone has figured this out by now.
they need a purpose. they lost their original one with the end of bretton-woods. Nearly 40 years of preparing a world government, and now the time has come.
Wow, hadn't thought of that until Steve Liesman blurted it out awhile ago..... Next Stevie will come to the conclusion that the Fed may have to print if there is further decline in confidence....
Eurozone debt web: Who owes what to whom ?
Debt is debt ... even if it's Circular !
Net all the Debt, and the Bankster & Politicians are out of business !
.. which is why we have so much !
its not the debt--its the interest!
Sounds like a bad "Frankfurter"
Who the fuck gave them this mandate, also national governments broke all laws that we now backstop other countries debts. Who the fuck they think they are. This is unbelievable. Germans please vote Merkel down asap and go to DEM, so we can all live with our own national currencies.
It took the Soviet Union 70 years to collapse. The Euroland Union woun't take that long:)
I will guess everyone in Europe is scrambling to change their bond auctions to Mondays.
ecb is going to force the screw job away from them and on to the usa. we are fucked.
€1 trillion of printing per year. This is the end of Eurozone as Germany will leave.
The only way for Eurozone to stay intact is 0 monetization and 50-70% default across the board.
This will send the markets up 4 or 5 percent today, Im big time short..... I am big time F'ed............... A trillion a year solves all of the EU....... Print on Bitchez......... Germany is TOAST.........
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.