ECB Steps In With Fifth Market Rescue In A Row

Tyler Durden's picture

Following four straight days of market intervention by the ECB through Italian BTP purchases, the European central bank, defiant of all market logic, decided to make it five out of five and once again stepped in with some modest buying in Italian bonds just as they were on the verge of taking out the Friday post-intervention support. Telegraphed buying also pushed up the EURUSD in the premarket session and sent the futures to the pre-opening highs. Granted this is nothing more than just another very short-term fix. What is is quite obvious, is that despite the relentless interventions by the ECB (and central planners around the world), a takeout of the 91 level on the 10 Years (and 6%+ corresponding yield) is a given, after which there is no technical support. By then a far, far bigger EFSF better be ready for deployment. Alas, it won't be.

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Belarus's picture

And the EUR/USD is leaking.....will be an interesting week, no matter how it plays out. Leave it only to ZH to report the truth. Keep an eye on MSM portals, if they get a whiff of what is really going on, you'll finally make some money on the short side.....of course, that is until Bazooka Ben comes in, after all, it's the only Bazooka in town.

LawsofPhysics's picture

I have asked this several times, still no answer.  What happend to the additional 400 billion?  Has the Fed published a POMO/Reverse POMO schedule yet?  if so where is it?  thanks

anti Oligarchy's picture

I think ZH is probably the best source of info on this sort of thing, but how exactly do we know that it is the ECB that is intervening in the market?  Couldn't it just be a hedge fund that is applying a lot of money to buy up bonds?  If they super-leverage the EFSF and drive rates down, it could be a good play.

Not that I actually think the ECB isn't interfering, I just wish I understood how it is known that it is in fact the ECB doing the buying.

Nate H's picture

its not the ECB. They have reached end of their mandate. If you look at ECB website data there have been no purchases since last month.

(not saying their mandate won't be 'changed' in future)

godzila's picture

Basically anyone buying Italian bunds is the ECB as per ZH logic... Might actually be the case :)

defn8Dog's picture

Interestingly, today the yield on Greek 1-years has ticked down and the 2-year has ticked up. 

CPL's picture

Gold/silver are trading in pairs again against all currencies.


Watch your asses guys.  Looks like someone turned off the trade bots or the humans are playing a better game today.

slewie the pi-rat's picture

will Bazooka Ben save us from the Traingle of Terror?

stay tooned, BiCheZ!

SheepDog-One's picture

Already trying to price in a far BIGGER EFSF (bailout) and they cant even put the ink to the first EFSF fiasco of completely imaginary money, leveraged up to the sky. 

CPL's picture

...and what happens then? 


Keep the idea moving like a chess board, the outcomes are all bad.  There is only one option left now.



Weinmar on a global level.  The thermo nuclear strike of all financial holdings printed into nothing.

SheepDog-One's picture

Its a 5 dimensional chess board. Theyre chaining the Eurozone together as 1 so it can be taken down as 1 and no one can escape.

CPL's picture

Unfortunately yes, a lot of people are going to get hurt this week.

LawsofPhysics's picture

I still think that (like the return on Greek bonds) the "value" of any given fiat will skyrocket prior final collapse.  Just a question of of how "exponential" the sheeple will let TPTB go, and since you can always add more zeroes and the sheep appear to be infinitely stupid, this could get interesting indeed.

Scalaris's picture

Hope now available in injectable or sublingual form.

mayhem_korner's picture



Mr. Owl, how many bailout plans does it take to rescue the EU? 

The world may never know...

TruthInSunshine's picture

What the world, and the Eurozone, need now, are some animal spirits.

After said animal spirits take over, the banks will be flush, the governments will have more revenue than they can spend, there will be 100 jobs for every job seeker, unicorns will prance about sharting gold doubloons, and male pattern baldness, the common cold and cancer will be cured.

And Joe 'Go, Obama, Go!' Wiesenthal will be the POTUS. lulz

Everything is going to be fine. Let's just hope the animal spirits take over sooner rather than later.

HardlyZero's picture
Vatican calls for global authority on economy, raps “idolatry of the market”

Italian style bailout ?  Maybe this is the "fix" ?

fnord88's picture

Anybody know how much gold the Vatican has?

buzzsaw99's picture

they paid WAAAYYYY too much for those.

Josh Randall's picture

Go long burning trash in front of Euro Squid's offices again

pendragon's picture

can anyone explain how the commitment of traders report is relevant? okay so the punters are short 10bio eur but surely that's not more than 100pips in the currency pair?

LawsofPhysics's picture

Great question, I second your request.  Even the punters have a certain range that they need to be in, at least if they want to be effective.

Mike2756's picture

It's a lagging report, don't know why they can't report at the end of the current week. Just watch the cash market.

pendragon's picture

yes ridiculous. fiday must have seen some short covering looking at the chart.

CPL's picture

Currency pairs don't matter anymore if they are trading directly against PM's now.


This is the subtle shift into PM's all that is left now to figure out which horse is the least appealing at the glue factory.  Anyone that had any brains was out of FOREX glue factory three years ago with the first massive printing.  All you are playing with in FOREX now is time because the assumed value of the trade is already suspect or point blank worthless as a risk baring trade.


But it's not the good type of time, as in you wait it out, this is the bad type of time.  The one where you cannot afford to be the bagholder because the longer you wait the less you are worth.

lizzy36's picture

But CAT was fantastic.

And the US is going to GROW  in 2012, god damn it.

I mean the fact that they called for 3% GDP growth in 2010 and were only off by close to 70% shouldn't matter right.


LawsofPhysics's picture

Yep, 3% growth with a currency that will be worth 20-30% less.  Winning!

GeneMarchbanks's picture

Yellen yellin' for QE3/4. Should it be so(of course it will), I think BTFD is a safe bet.

JohnG's picture

Dudley this morning as cometh.

GeneMarchbanks's picture
*Fed’s Fisher says that inflation is not the problem in the US right now

Full steam ahead!

LongSoupLine's picture

Below 91 in 3...2...1...

Schmuck Raker's picture

"All is well...remain calm."

NEOSERF's picture

Where is the ECB getting the money to do this...did someone call Germany?

mayhem_korner's picture



BTW, when all the real fighting starts, is the EU going to be on the side of the US?  Inquiring minds want to know...

SDRII's picture

CAT beats and lifts outlook but the Finnish Konecranes pre announces?

From the Interim Report Q3 | 2011 on 20 October 2011: Market outlook

Forecasting the demand continues to be challenging due to the macroeconomic uncertainties caused by the budget deficits and the level of public debt in Europe and the US . We have started to see signs of a weakening demand, but the level of new inquiries is still reasonably good.

Financial guidance

We forecast the 2011 operating profit, excluding possible restructuring costs, to be approximately on the same level as in 2010. Sales are expected to be higher than in 2010. Business Area Service operating profit in 2011 is expected to fall short of 2010 level. The 2011 operating profit of the Business Area Equipment is forecasted to increase from 2010.

Meanwhile looks like the drones have flown south...


Kenya says other foreign military forces have joined an offensive against al-Shabaab militants in Somalia.

Military spokesman Emmanuel Chirchir said Sunday that a French naval ship bombed the southern Somali town of Kuday near the rebel stronghold Kismayo.

Warplanes have also carried out airstrikes in recent days in Kismayo, but it is not clear who was responsible for the attacks.

Chirchir said the airstrikes were done by allies, but no other nations, including France or the United States, have confirmed any involvement in the operation in Somalia.

Kenya sent its troops into Somalia earlier this month to pursue militants it blames for a string of foreign kidnappings on Kenyan soil, threatening the country's reputation as a safe investment and tourist destination."

SheepDog-One's picture

WW3 going on right before our eyes, and no one even notices.

LawsofPhysics's picture

Lots of resources in Africa, American companies have been here for a while, Chinese companies now too.  "All your assets and resources is belong to us."  This is expected, look for U.N.-backed "rebels" and central banks to spring up all over the continent.

HardlyZero's picture

Oil, Gold, Diamonds...commodities.  A largely unexploited and undeveloped continent.

Duke of Con Dao's picture

CNBC Cancels Michael Moore Wall Street Appearance After Pressure From NYSE

Mohan's picture

CNBC knows who pays their bills.

falak pema's picture


Hardly has the Central revolutionary council of Libya affirmed control of the whole liberated country that it proudly proclaims, as first act, the reintroduction of the Sharia laws; polygamy will now be officially allowed and divorce banned. Libya, now gone totally tribal and free to find its traditional roots, after Q-daffy's despotic but paternalistic and welfare statist reign where polygamy was forbidden to protect women's rights, thus takes one giant step back into regression.

I wonder what the response in those high-faluting political circles of western democracies is to this travesty of human rights by their surrogates installed after destroying the past regime so brutally. "Did we do all this to achieve this result" Would be a good starting point. 

As a side issue, the Tunisian Arab spring now seems to elect an Islamic government which may have similar bend in the coming months. If we look back during the 1991 Algerian elections the people elected an Islamic government which was overthrown by a military coup resulting in 20 years of civil war in Algeria in the form of islamic terrorism. 

The winds of change and their surprising fruits of past decadence...will it bring contagion via increasing islamophobia in Eurozone? Action and reaction as the world goes into geo-political regression big time.

BandGap's picture

It has to happen all at once.  There's chaos, and the there's CHAOS.

Nate H's picture

how can you prove that is ECB buying? Didnt show up on their data at all last week

Madcow's picture

I'm starting to realize that "central banking"= "sex criminals."   All this mischief has nothing at all to do with economics.  These people are sex criminals. the "IMF" and "ECB" and "BIS" and "FED" ... Just a bunch of sex criminals trying to figure out how to create more and more regulations, taxes, bailouts, and sex crime.  The more chaos they create, the more opportunity for sex crime.  Don't agree?

- when SEC computers were audited, they discovered that most employess were spending their time looking at porn - not "working"

- the vast majority of strippers and hookers in NYC and London rely upon bankers and traders for their income

- president Clinton, who handed over control of the US financal system to Citibank, GS, and JPM, used his power to have illicit sex with interns in the White House

- the head of the IMF literally travels around the world literally raping people


So really, this is not about interest rates or monteary system reform or free markets vs collectivism.  All that is a political smokescreen to prevent the average citizen from understanding what is really going on here.   Sex crime.  We have a global cabal of sex criminals who have take over world government.  We have to stop looking at this from the paradigm of "right vs left" or "easy vs hard money" and recognize what we are dealing with here.  

Sex criminals.  Creating chaos - so there can be more and more bailouts, more and more taxes, more and more corruption, and more and more ... Sex crime.


common_sense's picture

How ECB is playing market game, is pathetic. Like FED, they are looking for their Lehman, & they are really closed...

HardlyZero's picture
Vatican calls for global authority on economy, raps “idolatry of the market”

Fix...Italian style.

warchopper's picture

I want to go long right now...which means the market is about ready to implode.