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ECB Goes Hog Wild, Lifts Every Offer In Another Failed Attempt To Calm Market
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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up up and away
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."
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!
Not only are your verses dead on, they always scan perfectly. Just had to give you your props.
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.
ECB is spending the money in the wrong place and mechanism. They should save this firepower and absord the new issuance / roll in 2012.
Seems like a great time to sell.
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.
it will overshoot. 850.
we better start watching our 30 closely
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.
BB: Presto!
BB: sotto voce ("that was hard, pulling ThaT out of my ass!")
Give CNBC five minutes to spin it bullish for S&P... Bullard says EU crisis won't effect US...so we're saved!
The Chanukah rally begins next week.
It appears they are paying in dollars.
"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.
To the moon, Alice!
BandGap ???
R U a semi guy ?
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????
"ECB is financing capital flight"...Doug Noland, Prudent Bear
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?] /oh...you do/
capitalism is long gone
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)
Woo Pig Sooie!!
IMF will give PRECAUTIONARY CREDIT LINE TO ITALY
here comes EUropean Quantitative Easing Program
http://imageshack.us/f/412/euroqebaml201112.jpg/
Good for Silver and Gold...and...commodities...
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.
http://vimeo.com/31100268
This is a crock of shit!
Reuters: GERMAN DEBT AGENCY HEAD DAUBE-HYPOTHETICALLY ECB MAY NOT BE WILLING TO TAKE SOME COUNTRIES' SOVEREIGN DEBT AS COLLATERAL IN FUTURE, COULD FORCE EURO EXIT
I'm sure it'll take their gold.
Germans need to find sanity fast or they get to be the bag holders...
Merkal is pretty dumb ...she came from East Germany afterall
Yeah, nice huh?
Great to see EVERYBODY in the EZ on the same page.
Different books maybe. But, same page.
Further:
“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.
-RanSquawk
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.
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.
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
Another Pre-Christmas Screwge!!
Baader Meinhof returns! http://whydtinogo.blogspot.com/2011/11/merkozy-latter-day-baader-meinhof.html
If the ECB was sincere about making it all work, they would have to cut the policy rate by 75 basis points.
GOBBLE GOBBLE BITCHEZ! EAT EM UP YUM!
http://www.youtube.com/watch?v=OXeIdX9T5HY&feature=related
ECB and EFSF are testing Germany's resolve. This is a dangerous game of chicken.
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
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 whoosh...off to the races we go!
Subsequent denials by the Chinese, and a return to 7% yields within a day, instead of minutes?
im 220bio bid
SQUEAL PIGGY SQUEAL!
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.
Not a pleasant image. Funny, but not pleasant.
SMP went over 200b Euro last Friday:) This week is the cream:)))))
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
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.
ECB goes Full Retard - Germans are warming up their Panzers
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....
Confidence-inspiring manipulation. Way to go, Super Mario, you corporatist cunt.
OVER 9000!
o Wait now its under 1.
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.