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ECB Leaves Rate Unchanged At 0.75% Despite Expectations Of A Rate Cut
Despite consensus for a 25 bps cut by the ECB, Mario Draghi decided to leave rates unchanged. To say that this is ominous for the press conference in 45 minutes is an understatement.
From the ECB:
6 September 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 0.75%, 1.50% and 0.00% 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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I reckon we are up for a huge disappointment. Don't forget Buba calls the shots, no matter how much finger-boning the ECB does.
Poor, poor SuperMarioDraghi, the ECB Council denies him SuperCelebrity Status like Prof.Dr. Chairman Bernanke.
Those 17 evil central bankers don't realize he just wants to save the the pink flying unicorns from death.
Draghi will be testing Buba - I dont think they call the shots anymore...
Patiently waiting for a possible drop in gold price.
What?
Where have you been for the last 12 months, until about a week ago?
No change....no money either.
what's "money in reverse" again?
netative GROWTH? But at least it's GROWTH.
Looks like we're winning.....AGAIN!!!
Negative sounds so negative. Couldn't we call it 'inverse positive' growth? I bet the algo's would go ape shit.
euro area do money so much better than anglo saxons
euro area do money currency so much better than anglo saxons.
fixed it.
historically, no. in the last 200 years the 17 central banks of the eurozones had much, much more inflation, a dozen hyperinflations, some assorted striking of zeros (sometimes three, sometimes two times two) and all the rest.
The Bank of England and the Federal Reserve in comparison enjoyed reserve currency superstatus - a different world.
If you want to make the case you would have to write something like: "they have more experience in what can go wrong".
We all know that dollar fails sooner or later as the only reserve currency and the meantime it does everything in its power to defend its superbly advantageous position!
Here is a graph showing the nature of the currency components of this "European Hyperinflation" (since late 60's). There are anecdotes of several hyperinflations in Europe, like the one in Germany. Unfortunately this one must be discounted (perhaps several others too) as it was imposed to Germany by major foreign powers: http://www.galacticwind.com/eduR/2012/BigPicture.html#2
Today's FT had a comment why e.g. the Chinese currency is unacceptable parrticipating as to any reserve currency pol: "Beijing needs to free up interest rates so they respond to market signals rather than phone calls from state planners" (we all know that LIBOR is a real tool to determine the "correct" interest rates for the markets - the earliest reports of its use for this purpose reach to 1992)
It all is just a simple struggle between Banking Empires and Countries - Emperors need subjects and ruling the world is more impressive than ruling just some careless plebs!
Droogie thinks he walks on water.
You can hardly walk a step in Euroland and not bump into a Messiah.
Droogie thinks he walks on water.
well, he is a former Goldmanite after all. Whe you do God's work, walking on water is a perk of employment.
Evil has many disguises.
well done germany. you grew balls
When a Chairman cannot influence the outcomes of a central bank monetary committee, then the Chairman is without influence. I fear Mr Draghi will disappoint his former partners at Goldman Sachs today, but that Germans will be celebrating the ECB being Frankfurt-based tonight.
Here's my bet' Draghi will pay lip service to some form of action two weeks from now, but take zero action in any way, shape or form today - Dow will close up 150 points, metals and oil will mysteriously de-couple from the rally (Hello Ben)...Two weeks from now, rince and repeat! (metals and oil have already lost 50% of their pre-market highs) hehe!
One thing for certain - Stocks CANNOT go south and only a fool believes otherwise!!!
Sorry...I was wrong again - Dow up 140, Gold down 15.00 from pre-market high, Silver down .30 cents from PMH...Yet, oil holds its highs at +$1.70 When am I gonna get this right?
Initial claims today as well.
DavidC
The ECB leaving interest rates unchanged likely means money market rates are presently close to the ECB's target. For the same reason the RBA kept its target rate unchanged the other day.
2.30 CEST they mean
So no rate cut is bullish for the markets now? I might as well start trading by buying random assets at random time in this market then.
9,9,9.
Wtf is going on with futures
Broken market. Bad news have been good news for too long. It's gonna take a while unitl the algos realize that bad news are in fact bad news. Or maybe they still have hope in Draghi to save the world?
Wow, futures are cras....WTF!
do you guys own a tv, may want to turn it on.
McDraghi's Fast-Food:
Cashier: Hello, can I help you?
Customer: Oh, I'd like a sterilised bond purchase please!
Cashier: Certainly, would you like fries with that?
Customer: Thx!
Cashier: Have a nice day!
:)
[ Confucius say Draghium begets Hopium begets Fakium begets Crashium ]
Who could've seen this coming? /sarc
I am amazed how many people here are still hangin on for some big disappointment. Even if Draghi disappoints Hilsenrath will leak a rumor that Bernanke is planning something "unconventional and possibly larger than the market expects".
Yup. Intercontinental tag team bullshiting. Professional level of course.
Anymore, when ZH says something is ominous, nothing tends to happen. That's why I don't get that lathered up anymore. They can stretch this out for a loooooooong time.
Precisely what they are trying to do. This is all about conditioning. Once people think that "nothing" can possibly ever really happen as long as TPTB are on the job, they relax. Confidence is supossed to return, and the can gets a little lighter for the next kick. Is the same formula used over and over again.
The problem is that it isn't working this time.
I am tired of the drama as well.
Like I said.....they are fluffing the jobs numbers market goes up, Draghi pukes up more bullshxt markets go down, net/net nothing happens.....what a shocker.
Look this is my shocked face :-o
At some point, real commodities must be delivered in order for anyone to actually do anything. When contracts to deliver the essential goods and services are not met, then, and only then, will shit get real. Hedge accordingly. History shows this to be the case over and over.
Today's pop quiz, finish the following quote and identify the author;
"When goods and services stop crossing borders... "
Uhhhhh Borders files for bankruptcy?
-CEO
How is this not bullish? The market will be up on the hopes that at the next ECB meeting they will cut.... No SARC intended.... Simply how twisted the Ponzi has become.
How many times do I have to say it for people to understand:
At this point it's only Merkel that makes decisions. Draghi has to submit proposals to Merkel and Merkel and advisors will say Nein or Ja.
ECB is left TOTALLY powerless at this point.