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ECB Goes Hog Wild, Lifts Every Offer In Another Failed Attempt To Calm Market

Tyler Durden's picture


In yet another attempt which will backfire miserably, starting about 30 minutes ago the ECB has gone absolutely apeshit in the market and has been buying every single piece of paper it could get its hands on, focusing on BTPs with Spanish bonds in second place. As the chart below shows, following what has been a non stop buying spree, the Italian benchmark 4.75% of 2021 has soared from 84.75 to 86 in one non-stop run. The implicit motive is to get the Spanish Bund spread down from 500 bps which virtually guarantees a margin hike and a collapse into the toxic debt hole. Will they be successful? Of course not: we give this intervention another 10-15 minutes tops before Draghi's bond buyers are exhausted and the selling resumes. In the meantime, the ECB's SMP cumulative total is now well over €200 billion.


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Thu, 11/17/2011 - 09:09 | Link to Comment AngryGerman
AngryGerman's picture

up up and away

Thu, 11/17/2011 - 09:32 | Link to Comment SWRichmond
SWRichmond's picture

ECB needs to show the world that the "technocrats" are competent and capable, and confidence-inspiring.  Trouble is, you can't spell "confidence" without "CON."

Thu, 11/17/2011 - 09:43 | Link to Comment The Limerick King
The Limerick King's picture



The ECB's buying in vain

To try to delay all the pain

As Einstein would say

(In a more pleasant way)

These fuckers are simply insane!

Thu, 11/17/2011 - 10:18 | Link to Comment Kilgore Trout
Kilgore Trout's picture

Not only are your verses dead on, they always scan perfectly. Just had to give you your props.

Thu, 11/17/2011 - 10:00 | Link to Comment Gief Gold Plox
Gief Gold Plox's picture

You've got to be wondering what the hell do these people think they're doing? I mean come on. They've got to have figured out by now that there is absolutely no saving the Euro. Sure they might try print and still fail a little bit later, but quite a bit harder. I really don't see the point any more.

Thu, 11/17/2011 - 12:13 | Link to Comment msohn
msohn's picture

ECB is spending the money in the wrong place and mechanism. They should save this firepower and absord the new issuance / roll in 2012.

Thu, 11/17/2011 - 09:12 | Link to Comment john39
john39's picture

Seems like a great time to sell.

Thu, 11/17/2011 - 09:25 | Link to Comment 101 years and c...
101 years and counting's picture

wonder if american banks are dumping those toxic assets yet.  when they do, they'll bring that money back to the US.  therefore, buying USD, selling EUR and EUR freefalls to 1.20.   S&P 1050 sooner than most think.



Thu, 11/17/2011 - 09:26 | Link to Comment jdelano
jdelano's picture

it will overshoot.  850.  

Thu, 11/17/2011 - 09:12 | Link to Comment Irish66
Irish66's picture

we better start watching our 30 closely

Thu, 11/17/2011 - 09:16 | Link to Comment fonzanoon
fonzanoon's picture

Yup watch it closely. Watch it go to 2.5%. It's going to take a really big gun to bring this elephant down. It will happen but I don't they have invented the gun yet.

Thu, 11/17/2011 - 09:25 | Link to Comment LeBalance
LeBalance's picture

BB: Presto!

BB: sotto voce ("that was hard, pulling ThaT out of my ass!")

Thu, 11/17/2011 - 09:12 | Link to Comment HD
HD's picture

Give CNBC five minutes to spin it bullish for S&P...  Bullard says EU crisis won't effect we're saved!

Thu, 11/17/2011 - 09:25 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

The Chanukah rally begins next week.

Thu, 11/17/2011 - 09:12 | Link to Comment firstdivision
firstdivision's picture

It appears they are paying in dollars.

Thu, 11/17/2011 - 10:03 | Link to Comment Iam_Silverman
Iam_Silverman's picture

"It appears they are paying in dollars."

That would make sense - if the Federal Reserve is worried about US bank exposures to EU Sovereign debt, what better way to handle the offloading of said problem?  Open an ECB dollar swap line with the instructions that they are to buy EMU debt, then have the US banks offload the toxic waste into the spike (mini-rally) for a win!


If that's the case, then who really cares about how long the effect lasts - as long as the US banks get out from under their burden while prices are up and they can minimize their losses.

Thu, 11/17/2011 - 09:13 | Link to Comment BandGap
BandGap's picture

To the moon, Alice!


Thu, 11/17/2011 - 11:59 | Link to Comment JungleJim
JungleJim's picture

BandGap ???

R U a semi guy ?

Thu, 11/17/2011 - 09:13 | Link to Comment youngman
youngman's picture

Now if i was a Bank or Hedge Fund and had this crap.......and knew the ECB was buying....I would dump my crap...wouldn´t you????

Thu, 11/17/2011 - 09:26 | Link to Comment ViewfromUnderth...
ViewfromUndertheBridge's picture

"ECB is financing capital flight"...Doug Noland, Prudent Bear

Thu, 11/17/2011 - 09:30 | Link to Comment LeBalance
LeBalance's picture

please expand your discourse with emphasis on the allegiances and common goals of said financial house..or houses. [do "we" really view hedge funds (oh way over here) and Bank (over way over there) and CB (oh oh way way over there) as being a different?] / do/

Thu, 11/17/2011 - 09:13 | Link to Comment transaccountin
transaccountin's picture

capitalism is long gone

Thu, 11/17/2011 - 09:38 | Link to Comment Zero Govt
Zero Govt's picture

the zombies have taken over for sure.. Welcome to ZombieWorld

...but Capitalism still Rules (see what it did to the commies of USSR, China and North Korea)

.. and you can see the same shadowy figure of capitalisms Grim Reaper getting ever larger and blade ever sharper behind these inept fuking State morons/monopolists

...Judgement Day cometh and it'll be a truly historic politico-banker bloodbath (get an umbrella with your popcorn)

Thu, 11/17/2011 - 09:14 | Link to Comment pettolicious
pettolicious's picture

Woo Pig Sooie!!

Thu, 11/17/2011 - 09:19 | Link to Comment hugovanderbubble
hugovanderbubble's picture



here comes EUropean Quantitative Easing Program


Good for Silver and Gold...and...commodities...

Thu, 11/17/2011 - 09:15 | Link to Comment qussl3
qussl3's picture

At this rate the ECB might as well be the bad bank for PIIGS debt and be done with it.

EZ banks dump that crap to the ECB, and the PIIGS default/reform/restructure...etc, as long as the sheeple continue to accept EUR nothing will change.

Will be hilarious to watch various CBs scramble to accumulate gold on the sly in the meantime.

Thu, 11/17/2011 - 09:16 | Link to Comment route40misery
route40misery's picture


This is a crock of shit!

Thu, 11/17/2011 - 09:17 | Link to Comment Dick Darlington
Dick Darlington's picture


Thu, 11/17/2011 - 09:18 | Link to Comment qussl3
qussl3's picture

I'm sure it'll take their gold.

Thu, 11/17/2011 - 09:22 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Germans need to find sanity fast or they get to be the bag holders...

Thu, 11/17/2011 - 09:42 | Link to Comment Zero Govt
Zero Govt's picture

Merkal is pretty dumb ...she came from East Germany afterall

Thu, 11/17/2011 - 09:47 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Yeah, nice huh?

Great to see EVERYBODY in the EZ on the same page.

Different books maybe. But, same page.

Thu, 11/17/2011 - 09:51 | Link to Comment Schmuck Raker
Schmuck Raker's picture


“But hypothetically one could think that the ECB might not be willing any longer to take the sovereign bonds of one, two or three or four countries, so this might mean technically they might have to step out,” he said.


Thu, 11/17/2011 - 09:23 | Link to Comment DormRoom
DormRoom's picture

These ECB interventions are vulgar Keynesianism, bastardizes his theories, and will lead the EU into a liquidity trap, like the US.


They've have spent so much resources trying to solve an intractable structural problem, that they will not be in a strong position when the day of reckoning finally arrives.  European misery will be great because of their short term bias, and miscalculations.

Thu, 11/17/2011 - 09:24 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

The first part of your sentence is on a sound logical foundation, the second part is where you make a leap to severe bias. Try again.

Thu, 11/17/2011 - 10:13 | Link to Comment Zero Govt
Zero Govt's picture

DormRoom  -  the "short term bias" is SOS (Save Our Skins)

no vacuous tosspot (politician) wants a collapse on their watch, hence all the spineless, mindless can kicking, rather than the real solution of the free market: let the shit hit the fan and flush the crap down the toilet

the only upside is more people have time to cotton on what's really happening and get prepared. I'm certainly grateful to the living-deads (politcos and CB's) delusions as i'm still some way off being in good position for the almighty crash

Use the time wisely

Thu, 11/17/2011 - 09:18 | Link to Comment ziggy59
ziggy59's picture

Another Pre-Christmas Screwge!!

Thu, 11/17/2011 - 09:20 | Link to Comment FranSix
FranSix's picture

If the ECB was sincere about making it all work, they would have to cut the policy rate by 75 basis points.

Thu, 11/17/2011 - 09:21 | Link to Comment Caveman93
Caveman93's picture


Thu, 11/17/2011 - 09:26 | Link to Comment alien-IQ
alien-IQ's picture

ECB and EFSF are testing Germany's resolve. This is a dangerous game of chicken.

Thu, 11/17/2011 - 09:54 | Link to Comment Zero Govt
Zero Govt's picture

it's a game of chicken Merkal can't win ...EC-ECB-Bankers to the left, voters to the right... she gets plucked/fucked either way 

Thu, 11/17/2011 - 09:28 | Link to Comment TooRichtoCare
TooRichtoCare's picture

All you need is for one of the CNBC twits to innocently throw in a little conjecture & speculation by "musing" about the "possibility" that ECB is actually buying "on behalf" of the Chinese....and that there's a LOT more firepower behind these purchases than people think....and to the races we go!

Subsequent denials by the Chinese, and a return to 7% yields within a day, instead of minutes?

Thu, 11/17/2011 - 09:29 | Link to Comment pendragon
pendragon's picture

im 220bio bid

Thu, 11/17/2011 - 09:31 | Link to Comment equity_momo
equity_momo's picture



The Euro is gonna feel likes its been buttfucked by a couple of banjo players before this is over. For that matter so will US stocks.

Thu, 11/17/2011 - 09:39 | Link to Comment Ronaldo
Ronaldo's picture

Not a pleasant image. Funny, but not pleasant.

Thu, 11/17/2011 - 09:41 | Link to Comment Peter K
Peter K's picture

SMP went over 200b Euro last Friday:) This week is the cream:)))))

Thu, 11/17/2011 - 09:43 | Link to Comment dcb
dcb's picture

wrong, plot udn weekly. we were to bottom out this am, I though at the open, but of course it happend in europe and that's that

Thu, 11/17/2011 - 09:57 | Link to Comment AGoldhamster
AGoldhamster's picture

no big surprise at all ... 1.34 so far is beeing vigorously defended ... yesterday the first time; you better get ready for a major low and reversal for a couple of weeks ... turndate sits inbetween yesterday and latest  nov 25 ... thereafter the good times are back - for around 4 weeks.

Thu, 11/17/2011 - 10:00 | Link to Comment Desert Irish
Desert Irish's picture

ECB goes Full Retard - Germans are warming up their Panzers

Thu, 11/17/2011 - 10:01 | Link to Comment youngandhealthy
youngandhealthy's picture

I can easily argue for that Banksters did go apeshit (on the short side) just before the auctions this morning...the F10yr-G10yr were over 2,01% just before the results 10GMT and now 1,75%  (13%)...

So the F...ers have "stolen" some money again....

This is nothiong but a big steel by the Banksters....


Thu, 11/17/2011 - 10:22 | Link to Comment Coldfire
Coldfire's picture

Confidence-inspiring manipulation. Way to go, Super Mario, you corporatist cunt.

Thu, 11/17/2011 - 10:40 | Link to Comment Dre4dwolf
Dre4dwolf's picture

OVER 9000!

o Wait now its under 1.


Thu, 11/17/2011 - 13:08 | Link to Comment Donlast
Donlast's picture

At some point Germany is going to step in and stop all this malarkee by the ECB.  Same with the backdoor lending to the IMF.  The ECB may pretend it is independent but it isn't.  It is piling up comitments that are at great risk and may go horribly sour.  It is not the ECB that is left to pay the bill but Euro members.  If they really ageed with the ECB actions they wouldn't be leaving the ECB to do it but supporting the insolvent members up-front.  This way it is just a mish-mash of responsibility. 

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