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ECB Keeps Rates Unchanged
As largely expected, except for some die hard contrarians, and as we predicted, the ECB keeps rates unchanged, and checks to the Fed. Now everyone turns attention to 8:30 am press conference where those who provide investment advice based on coin flips what central bankers do, will pray to their assorted gods that Draghi will fix everything. Or at least something.
From the press release:
6 June 2012 - Monetary policy decisions
At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.
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Reuters has a story that Germany caved on Spanish Bank recap. Germ MinFin looking at ways to ship funds directly to spanish banks. Wonder what the Greeks are thinking right about now :)
... a rip-your-face-off rally while the sheeple are away
And even more so the Irish.
They'll pay (or at least guarantee) part of money that would be used to prop up Spanish banks, and they also took debt to rescue their own banks. They must be proud of what they will have accomplished by the time this crisis is over.
I believe the appropriate response, according to Mr. Panos, is "F*#k you, Malakas!"
Fuck OFF Bitchezz!!
This is good right? Lowering interest rates is bad the the EU and bad for the European savers.. Isnt this the correct thing to do?
America and UK are the die hard stimulators
The correct thing to do is increase rates.
This will encourage saving and reduce unsustainable debt driven spending.
righto gotcha
No need.
If you want higher returns, invest in PIIGS' bonds!
But the yields on the PIIGS bonds are still artifically low. For example the Spanish 10 year yield is 6.3%, this is artificialy low and manipluated by the ECB and the BIS, it should be at least 15%. They need to let yields increase, to encourage people to consume less, save and then eventualy invest the savings which would represent real resources into production. Fake money created from nowhere by the ECB cannot produce new real productive assets.
I do not disagree with the fundamentals of your argument. The theory is fine.
However I challenge you to think of some practical ways to do this. Would you be able to provide some example of 'real productive assets'?
I've been racking my brains for a while now to come up with some tangible industries that will increase wealth. I can't come up with any though....
"ECB keeps rates unchange",the futures are dropping like a rock on Balls Street after another "Hail Mary" didn't materialized for the Balls Streets Banksters.
See thats how easy trading is.
Now all you need is a well connected friend in one of those lettered institutions.
Define like a rock. Do rock drop towards the moon?
Only 36 bps off the high. The market is still clinging to hope that Draghi will announce LTRO 3, 4, 5 & 6 at the 8:30 press conference.
Expect the markets to pare back even further when that doesn't materialize.
Then the last hope is the Bernanke testimony in which Bernanke won't announce steps toward QE3.
What Causes Fiscal Policy to Tighten? http://www.cnhedge.com/thread-7137-1-1.html
the joke ECB leaves rates @ 1%, unchanged. And the euro drops ? LMAO just more proof of how bankster rigged these fraud markets really are. What a joke.
This is how effed up things are in the usa, 1% sounds good to me. [/sick]
Cut this "as we predicted" shit out. It demeans the good you do with this excellent site.
One day you are shouting "they'll print", next day you hedge by shouting the opposite. You can hardly be wrong with that kind of reporting.
Stick to what you do best which is reporting the truth that is largely missing from the main street media and leave this "as we predicted" shit to CNBC shills.
Respectfully.
Surely this is a rally signal! buy buy buy!
SPX rally warning & USDX retracement warning now confirmed & good (counter trend) equity upside expected.
http://www.zerohedge.com/news/2012-12-24/market-analysis