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ECB Intervenes In Last Minutes Of Euro Market Trading As Italy Closes Red Once Again

Tyler Durden's picture


This aggression of a red close in the FTSE MIB will not stand man. Which is why Trichet just went ahead and sent the cavalry to buy another X billion worth of Irish 10 years to send a powerful message that European taxpayer capital will be used to purchase worthless paper that is cash flow bad, until morale improves.


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Tue, 08/09/2011 - 11:29 | 1542651 slaughterer
slaughterer's picture

Yippee!  Jean-Claude got it down to 9.504%  Good work.  Now where do I send my money for this?

Tue, 08/09/2011 - 12:03 | 1542797 mourad88
mourad88's picture

Bunga Bunga!

Tue, 08/09/2011 - 11:29 | 1542652 PicassoInActions
PicassoInActions's picture

In other words, we play the game to the end. 

Tue, 08/09/2011 - 11:43 | 1542713 glenlloyd
glenlloyd's picture

yes, precisely, as TD stated some time ago, they will not willingly relenquish control without a fight.....a big fight.

Tue, 08/09/2011 - 11:30 | 1542658 Ancona
Ancona's picture's whats for dinner.

Tue, 08/09/2011 - 11:44 | 1542718 jus_lite_reading
jus_lite_reading's picture

Nothing says >>FREE MARKETS<< like intervention!! LMAO

Now THAT is CONfidence making moves right there TRICHET!! YOU DA MAN!!! 

Tue, 08/09/2011 - 11:53 | 1542755 Ancona
Ancona's picture

Actually Chief, That's an appropriate comment. Where I sit, the economy is not even sputtering. It's fallen off a cliff here, and looks to get a hell of a lot worse [think Londonistan the last three nights].

When the natives go all philadelphia here, it will be fucking mayhem.

Tue, 08/09/2011 - 11:31 | 1542660 PicassoInActions
PicassoInActions's picture

And EURCHF is 1.04. I wander when the parity begins


Tue, 08/09/2011 - 11:33 | 1542674 unky
unky's picture

Very soon. Funny is that the EUR/USD is still at 1.42. Both currencies seem to be doomed.

Tue, 08/09/2011 - 12:07 | 1542811 Peter K
Peter K's picture

The Euro/USD is at 1.4200 because the Peoples Bank of China has a standing bid. (There private war agianst US hegemony). But what we are witnessing presently is an inefficient market correcting itself. The residents of the PIIGS countries are dumping their Euro's for CHF en mass. And it's the Chinese who are giving them the out.

Tue, 08/09/2011 - 13:08 | 1542990 whirlybird rules
whirlybird rules's picture

Jibao and the Tea Party should talk.... they have the same objective.  

Tue, 08/09/2011 - 11:36 | 1542686 THE DORK OF CORK
THE DORK OF CORK's picture

Amazing - but unsustainable in my opinion , how will the Hungarians pay their mortgages ? ( imagine taking out a mortgage in Francs !)

The CBs need to signal Gold is going higher & the CHF is just fiat.

Tue, 08/09/2011 - 11:44 | 1542719 scratch_and_sniff
scratch_and_sniff's picture

Where are you getting your gold in Ireland dork - do you have to collect it yourself? whats your prefared size? (small bars are easy to hide and spread around? or huge bars and fuck whoever knows?) 

Tue, 08/09/2011 - 12:31 | 1542860 THE DORK OF CORK
THE DORK OF CORK's picture

Goldcore  which posts its observations on Zero hedge has a office in Dublin- they are slightly expensive in my opinion but professional.

I think Brinks is the safest method to hold Gold now as it is not a bank - see London riots also.

I like the pamp suisse  to be honest.

Tue, 08/09/2011 - 15:21 | 1543494 Ghordius
Ghordius's picture

did not know about it, thanks! PAMP, I presume the artistic design is also good to dodge the FDR laws...

Tue, 08/09/2011 - 11:48 | 1542737 Ghordius
Ghordius's picture

is my English really that bad? I don't understand half of your comments.

what do you mean by "The CBs need to signal Gold is going higher & the CHF is just fiat."

do you mean Hildebrand is supposed to do something or what?

(sorry if it sounds grumpy)

Tue, 08/09/2011 - 12:35 | 1542873 THE DORK OF CORK
THE DORK OF CORK's picture

The CBs just can buy the stuff in very large amounts - pushing up the price , the hot money will flow out of Fiat including the Franc and into Gold - then the Eurosystem will have the cash to give to goverments.

Tue, 08/09/2011 - 15:18 | 1543487 Ghordius
Ghordius's picture

pushing up prices of money = jacking up rates, which is exactly what is not happening because of the FED's ZIRP (and it's influence on the "FX competivity" of the countries), the refinancing needs of several sovereigns and TBTF banks and, not lastly, a humungus amount of people that are constantly talking of "the chains the EuroZone has on debtors", after it "forced a bailout on..." let's say Ireland.

I don't understand if you are advocating "sound money" - which is HARD on debtors or "soft money" - which is SOFT on debtors.

The "Eurosystem" - you mean the EuroZone CB+banking system, I presume, can give cash to the governments, it's government debt, then. Or a nationalisation, wich could be more likely.

Wed, 08/10/2011 - 08:56 | 1545719 THE DORK OF CORK
THE DORK OF CORK's picture


The damage was done when credit aggregates grew over sustainable GDP - the sound money vs soft money argument means nothing really as that uses the narrow confines of CBs base & Goverment money to define money.

Ireland for example would not have a large defecit if it defaulted on all shadow bank debt - if this crap remains on its books it must get into fiscal debt to pay this malinvested credit.

If not enough sov debt or cash is in the system and it cannot default on bank credit how can it pay this debt ?

The eurosystems cash is not goverment debt - goverments don't own the stuff.

A simple ECB balance sheet is Gold on the assets & cash as a liability - it has nothing to do with fiscal debts on that level.

Tue, 08/09/2011 - 11:50 | 1542749 Ghordius
Ghordius's picture

And by the way, this peddling of CHF mortgages to Hungarians and Poles is exactly what I hate from banksters.

Those idiotic Italian banks should have looked better at the portfolios of their Austrian acquisitions.

How can you even offer a CHF mortgage outside Switzerland and sleep at night?

Tue, 08/09/2011 - 12:00 | 1542786 Peter K
Peter K's picture

The real problem is peddling Euros to the Europeans. If I was a Greek bureacrat and was able to swap my euro for CHF at a ratio 1:1, I would do that trade in a heartbeat. Wouldn't you?

Tue, 08/09/2011 - 11:58 | 1542756 FeralSerf
FeralSerf's picture

Turnip's Law -- the Hungarians aren't going to pay their CHF mortgages.  The lucky Swiss will have a Hungarian colony (and a cheap place to get some dental work done).

If the SNB was really on the side of the Swiss taxpayer, it would be creating lots of CHFs and buying gold with them instead of dollars and euros.  At least the Swiss would have something of value for all the dilution of their savings.  And it would help solve the problem of an uncompetitive currency and empty hotel rooms.

Tue, 08/09/2011 - 12:08 | 1542779 Ghordius
Ghordius's picture

Agreed, unsustainable - hope their Govs will just convert by "fiat" (pun intended)

The "lucky" Swiss? In Hungary it's mostly Austrian Banks (some acquired by Italian), in Poland it's all kind of other banks, including American. Lots of TBTF involved, funnily Credit Suisse and UBS no player here.

The SNB is not that free - the "Agreement" between the CB's is to abstain from a "rush to gold". And any substantial new gold on the SNB balance sheet would just increase the FX rates.

Tue, 08/09/2011 - 12:21 | 1542857 FeralSerf
FeralSerf's picture

The first CB that reneges on its "Agreement" will win big time.  If the FX rates still go up due to the new gold, then they can just buy more.  Eventually they'll have all the gold and the world's appetite for CHFs will subside (or the Swiss will the the richest MFs on Planet Earth).

It might help to hide the newly purchased gold for a while.  Surely the Swiss know how to do that.   They might learn a few tricks from the PBoC if needed.

Tue, 08/09/2011 - 15:25 | 1543508 Ghordius
Ghordius's picture

....ehmmm... you don't know well the Swiss, I gather.

Ask them, they have no intention of becoming the ultra-filthy-richest-small-country of the world. They are quite simple people with a tradition of caring for details, that's all. They surely don't want to become the target of any gold-seeking invasion/retailiation/harassment.

yes, if they start to buy in panic, gold price will become "absurd"

Tue, 08/09/2011 - 12:03 | 1542796 OliverTwist
OliverTwist's picture

Szar ügy!

Tue, 08/09/2011 - 12:25 | 1542866 hungarianboy
hungarianboy's picture

They can sign a ducument with the Hungarian parlament to set a fixed rate for their CHF mortgages @ 180.

Currently CHF/HUF is 264.50. Most Hungarians took their mortgage between 140 and 180. So go figure.

Anyway, I wouldn't sign any document with the governement except the tax what we anyway have to pay.

Ohw and the reason is that I don't trust governements. I forsee that if the PM Orban Viktor had a bad night that he claims all houses who signed the document. You never know. Pretty fucked up here for the Hungarians. REALLY BIG SHIT!!!

Tue, 08/09/2011 - 11:31 | 1542662 John McCloy
John McCloy's picture

So when the revenues cease to come in on these bonds years out how does this all end? 

Tue, 08/09/2011 - 11:33 | 1542663 hedgeless_horseman
hedgeless_horseman's picture

"European taxpayer capital
will be used to purchase worthless paper
that is cash flow bad,
until morale improves."



T-Shirt for my European vacation.

Tue, 08/09/2011 - 11:38 | 1542692 Sudden Debt
Sudden Debt's picture

Better use this one:


Tell me how it went ;)


Tue, 08/09/2011 - 11:45 | 1542724 jus_lite_reading
jus_lite_reading's picture


>Can I trade you $14 Trillion for an ounce of gold?<

Tue, 08/09/2011 - 11:47 | 1542734 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

That might be dangerous to wear a shirt like that. 

Unless you have really big teeth and flail your arms continuously to ward off any would-be attackers. (don't you ever get tired) ;)

Tue, 08/09/2011 - 23:02 | 1545081 StychoKiller
Tue, 08/09/2011 - 11:55 | 1542765 Long-John-Silver
Long-John-Silver's picture

This would be more appropriate


Do you still accept US Dollars?

Tue, 08/09/2011 - 11:38 | 1542695 BlackholeDivestment
BlackholeDivestment's picture

...that is ah gooder, and priceless lol

on the back it says         ...Bitchez!

Tue, 08/09/2011 - 11:39 | 1542701 PY-129-20
PY-129-20's picture

We may not hear from you again. And you will need more than luck in a Greek prison cell. You know what happened to Sokrates.

Tue, 08/09/2011 - 11:34 | 1542680 Mercury
Mercury's picture

Yeah,,,but this time could we have even more cowbell please...

Tue, 08/09/2011 - 11:34 | 1542682 junkacc
junkacc's picture

Is this what happens with short bans? The graph looks like there were no fucking bids into the close.

Tue, 08/09/2011 - 11:35 | 1542685 Sudden Debt
Sudden Debt's picture



Tue, 08/09/2011 - 12:03 | 1542800 nah
nah's picture

noway man

Tue, 08/09/2011 - 11:38 | 1542691 Catullus
Catullus's picture

Germans, this doesn't end until you throw that no account Merkle off the Bundestag. Your retirement just went into sustaining the 2 hour Italian siesta.

Tue, 08/09/2011 - 11:49 | 1542747 slaughterer
slaughterer's picture

Get the Italians to send every German family a case of Ornallaia, a few Casata cakes, and some Frescobaldi olive oil every few months, and the Bundestag approval will be relatively easy. 

Tue, 08/09/2011 - 11:39 | 1542699 Atomizer
Atomizer's picture

Death by a billion paper cuts.

Tue, 08/09/2011 - 11:41 | 1542708 Little John
Little John's picture

  That's a good one - I'm gonna steal it.

Tue, 08/09/2011 - 11:39 | 1542702 eckart
eckart's picture

might have something to do with a big gold find under the Atlantic off the west coast of Ireland...the Irish have become Swiss overnight

Tue, 08/09/2011 - 11:43 | 1542710 bob_dabolina
bob_dabolina's picture

I had a question about our national debt. 

Where in the 15-16 trillion national debt is the 6-7 trillion in GSE debt? Where does that get factored in? Is that like an Arthur Anderson/ENRON thing?

Tue, 08/09/2011 - 11:49 | 1542745 Catullus
Catullus's picture

They're off balance sheet. It's a potential liability. They don't actually contribute to national debt until there's a cash demand to make the commitment whole. Imagine if the banks actually started to foreclose on some deadbeats! There's no reason and the Treasury would probably prefer they didn't. It's been discussed on ZH a lot, but there's really no reason to pay your mortgage in this country.

Tue, 08/09/2011 - 11:43 | 1542712 stuka
stuka's picture

The ECB is learning slowly from the FED how to invest in worthless assets (FED into MBS's at -commercial bank's- book value, the ECB into European treasures, such as PIIGS govies ;-( )

Tue, 08/09/2011 - 11:44 | 1542716 Ghordius
Ghordius's picture

Trichet is still my hero (though I wonder if he will be my hero beginning of 2012).

This is the artillery he's got and even Germans will admit that the most important thing about a Central Bank is independence from politics.

This is the sound of a warning shot: don't take dangerous positions in Jean-Claude's sight. He's got ALL the ammo that Ben has already spent.

Tue, 08/09/2011 - 11:49 | 1542740 machineh
machineh's picture

Hope he wins the Greenspan Prize that he so richly deserves.

Tue, 08/09/2011 - 12:01 | 1542789 Ghordius
Ghordius's picture

well, he has to work a few years more to accumulate that kind of "work"

but he has the street cred in my eyes to jack up the rates when needed

a CB chief has to be a bully or he is worthless

Tue, 08/09/2011 - 12:06 | 1542808 mantrid
mantrid's picture

Note there's no tremendous rant by Germans about this printing.. I think Berlin might have agreed to these actions temporarily .. if it's aimed at merely kicking the can waiting for the Chineese to start buying.. But why isn't China buying? Perhaps they're waiting to see if Bernank starts devastations with QE3?

What was that "massive 0.23% change in the fixed overnight rate, a move that very much hurts China" for?

kind of "you start QE3, then we switch to euro bonds" deal? does it make sense?

Tue, 08/09/2011 - 12:15 | 1542833 Ghordius
Ghordius's picture

because "...particularly Germans will explain that the most important thing about a Central Bank is independence from politics..."

He is behaving the same way the Bundesbank would have. And Germans have learned the lesson of having politics in the CB. His moves are legit, so far. It's not what he is doing that could be dangerous to the Euro, it's the willingness to do the opposite when required which makes all the difference.

The EuroBond: the Chinese ask for it, the TBTF want it. Period. Nobody else wants it.

Tue, 08/09/2011 - 11:44 | 1542720 Shock and Aweful
Shock and Aweful's picture

Does anyone have any insights on why the silver spot price has not moved like the gold spot has?

I would have thought with all the talk of QE3 and the massive intervention by the ECB and G-7 that all PM's would be moving nothward...

Are the short positions that pervasive and large that it is keeping the price surpressed....even in these conditions?

Is there a place where a person can see who is increasing or holding their short positions in Silver?  I am just curious who would be bearish on any PM in this market?

(I know this is a bit off-topic...but I have been thinking about this everytime I see another story about central bank intervention (money injections) into the markets...and keep scracthing my head as to why the price is flat or negative.

Any insights?

Tue, 08/09/2011 - 11:44 | 1542721 gangland
gangland's picture


Trichet: C'mon man, who're you gonna believe? Those guys are--we dropped off the damn money--

Sarkozy: WHAT?!

Trichet: I--the royal we, you know, the editorial--I dropped off the money...



Tue, 08/09/2011 - 11:48 | 1542736 gangland
gangland's picture


Berlusconi: There's no ransom if you don't have a fucking hostage. That's what ransom is. Those are the fucking rules.

Merkel: Zere ARE no ROOLZ!



Tue, 08/09/2011 - 12:10 | 1542823 OldTrooper
OldTrooper's picture

Berlusconi:  Fucking worthless euro-zone with a nine-toed PIIG.

Tue, 08/09/2011 - 11:47 | 1542731 RobD
RobD's picture

Nice V shaped recovery happening in gold...the economy not so much.

Tue, 08/09/2011 - 11:50 | 1542750 bob_dabolina
bob_dabolina's picture

nice intraday head and shoulders on /hg

Tue, 08/09/2011 - 11:47 | 1542733 Drag Racer
Drag Racer's picture

ah I get it now, I was wondering what the G7 meant by allowing the market to price rates.

Tue, 08/09/2011 - 11:52 | 1542753 Ghordius
Ghordius's picture

...allowing the "right" market to the "right" rates, of course.

Tue, 08/09/2011 - 11:52 | 1542754 bob_dabolina
bob_dabolina's picture

Some guy on CNBC just said major bull market in Arizona real-estate "there aren't even enough homes to sell in many areas"

Tue, 08/09/2011 - 11:54 | 1542759 gangland
gangland's picture


Arizona Bay


Tue, 08/09/2011 - 12:00 | 1542787 HelluvaEngineer
HelluvaEngineer's picture

Learn to swim...

Tue, 08/09/2011 - 11:59 | 1542781 d00daa
d00daa's picture

hahahahahahahaha, i live in phoenix metro and have multiple real estate and mortage broker contacts.  while things have stabilized marginally over the last few months, cnbs is, unsurprisingly, full of shit.

Tue, 08/09/2011 - 12:02 | 1542793 treemagnet
treemagnet's picture

I learned unicorns shit skittles on CNBC the other day....always wondered.

Tue, 08/09/2011 - 11:55 | 1542763 JW n FL
JW n FL's picture

India owes Iran $4.8 Billion and has paid $1 Billion already..

How much Aid goes to India?

The United States has an embargo in Place??????? What the Fuck are those dirty fucking towel heads doing with our money? Giving it to Iran?


Someone with common sense needs to clear out Washington DC of ALL the Lobby Whores and Status Quo Groomed Personalities! So that America can get itself back on track.


And before everyone thinks it is JUST India! How about the Natural Gas Pipelines than go thru Turkey (coming out of Iran) that supply Europe with 40% of its Natural Gas needs?


How much International Aid is Poured into Europe?

How many U.S. Dollars have been wasted at the Euro / Dollar Swap Window trying to keep the Europeans from falling off a cliff?


The WHOLE WORLD has it hand out to the United States for International Aid and Arms!

The United States is supposed to give up 60% of its Wealth to the World so that the World will Not be as Poor as before!


“We the People” are used as Congress and the Senates Back Stop for ALL of the Credit Extended to Wall Street!


Why is America filled with Stupid / Blind People? Is it the Fluoride(s) in the Water?


The market crash! Of 25% while the economist(s) reflect on whether or not now is an appropriate time for QE – 3 at Jackson Hole!

Tue, 08/09/2011 - 12:05 | 1542803 Ghordius
Ghordius's picture

what the world really does not need is another idiotic comment like "...those dirty fucking towel heads...".

Tue, 08/09/2011 - 12:10 | 1542824 fuu
fuu's picture

He thinks he is being edgy.

Tue, 08/09/2011 - 12:37 | 1542891 fishface
fishface's picture

I think he's being racist

Tue, 08/09/2011 - 12:09 | 1542820 fuu
fuu's picture

"What the Fuck are those dirty fucking towel heads doing with our money?"

Gives you the vapors doesn't it.

Tue, 08/09/2011 - 23:04 | 1545083 aviat72
aviat72's picture

Redneck in FL:


If you could read that page you would notice a lot of "aid" helps sell US stuff like Monsanto's seed (because of which a lot of Indian farmers commit suicide if their crops fail) and other assorted stuff and fostering "public-private" alliances. 


US does not give aid unless it helps foreign policy goals and Indian foreign policy is too independent (have you seen their voting record in the UN) to be swayed by Ben's printing press.


Do you know how much business "multinational" oil companies do with Iran in spite of the so called sanctions?


And you wonder  "Why is America filled with Stupid / Blind People?".


Pot, Kettle, Black.

Tue, 08/09/2011 - 12:02 | 1542791 OldTrooper
OldTrooper's picture

Bonus for invoking the Dude in what would otherwise be one more report of normal central bank operations.  Those bonds really tied the room together... And these guys pissed on em...

Tue, 08/09/2011 - 12:24 | 1542862 smore
smore's picture

Shut the fuck up, Donny.

Tue, 08/09/2011 - 12:02 | 1542792 gwar5
gwar5's picture


"The currency beatings will continue until morale improves."

Tue, 08/09/2011 - 12:03 | 1542795 Bohemian Clubber
Bohemian Clubber's picture

I bought the dip yesterday, am doing a nice +8% on the back of BAC, now have to go back to gold bitcheZ

Tue, 08/09/2011 - 12:04 | 1542802 Fix It Again Timmy
Fix It Again Timmy's picture

Why, Stanley, it makes perfect sense. To get out of a mess, you just continue to do the things that got you into the mess....

Tue, 08/09/2011 - 12:09 | 1542818 FeralSerf
FeralSerf's picture

"Why is America filled with Stupid / Blind People? Is it the Fluoride(s) in the Water?"

Why are bananas curved?

Tue, 08/09/2011 - 12:18 | 1542852 luigi
luigi's picture

I Beg to differ: the Corriere della Sera says Italian Stock exchange closes positive (+0,52, yet positive...), not that it would change too much...

Tue, 08/09/2011 - 12:49 | 1542921 anony
anony's picture

How did women, after Eve, get created?

Adam and Eve only had Cain and Abel.  Cain killed Abel so there was only the three of them and yet today we have 3.6 Billion women living and an even larger number that have 'joined the majority'?

Unless Cain had sex with his mom, there is something rotten out back in the woodshed.

And you think predicting market movements is ........WhaT?   this isn't the ATheists Board?

Sorry....go ahead, didn't mean to interrupt....

Tue, 08/09/2011 - 12:53 | 1542934 zorba THE GREEK
zorba THE GREEK's picture

The only buying in U.S. market today is a little bottom fishing and a lot of short covering before the Fed.

If the Fed disappoints, things could get ugly and gold will break $1800.

Tue, 08/09/2011 - 13:51 | 1543154 slaughterer
slaughterer's picture

If the Fed disappoints, gold could also go below $1700 again.  Do not forget the currency depreciation hedge on gold right now.  

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