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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slaughterer's picture

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

PicassoInActions's picture

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

glenlloyd's picture

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

Ancona's picture's whats for dinner.

jus_lite_reading's picture

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

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

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.

PicassoInActions's picture

And EURCHF is 1.04. I wander when the parity begins


unky's picture

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

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.

whirlybird rules's picture

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

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.

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?) 

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.

Ghordius's picture

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

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)

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.

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.

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.

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?

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?

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.

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.

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.

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"

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!!!

John McCloy's picture

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

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.

Sudden Debt's picture

Better use this one:


Tell me how it went ;)


jus_lite_reading's picture


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

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) ;)

Long-John-Silver's picture

This would be more appropriate


Do you still accept US Dollars?

BlackholeDivestment's picture

...that is ah gooder, and priceless lol

on the back it says         ...Bitchez!

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.

Mercury's picture

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

junkacc's picture

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

Sudden Debt's picture



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.

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. 

Atomizer's picture

Death by a billion paper cuts.

Little John's picture

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

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

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?

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.

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 ;-( )

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.