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ECB's Draghi Repeats The Party Line, Forces Another Brief EUR Squeeze, Sends Futures Soaring
When you can't act, you talk. Sure enough, here we go again:
- DRAGHI SAYS ECB WILL DO WHATEVER NEEDED TO PRESERVE THE EURO
- DRAGHI SAYS THE EURO IS IRREVERSIBLE
- DRAGHI SAYS YIELD DISRUPTING POLICY TRANSMISSION ARE IN ECB REMIT
- DRAGHI SAYS SHARING SOVEREIGNTY ON EU LEVEL TO COME
- DRAGHI SAYS LAST EU SUMMIT WAS MOMENT OF RECOGNITION
And of course the weak hands cover until they realize Draghi just said absolutely nothing, as at this point everything is in Germany's hands. And not only has Germany not said anything, and won't until September when the constitutional court will approve or deny the ESM, but in fact they have been saying overnight that Spanish bonds are not eligible for EFSF purchases. In the meantime, Europe has devolved from a continent of coordinated action to coordinated jawboning.
Take home: poor Draghi can't even afford Hilsenrath and has to force EURUSD squeezes himself. Because both he and Bernanke know that all they can do is talk the markets up. Any actual event is now grounds for selling the news.
In the meantime, here is the market reaction in a world in which nothing matters any more except what hollow words comes out of broke central planners' mouths:
- S&P futures spik, now up 6.6pts (or 0.5%) after being down 6pts just before Draghi pledged ECB will do whatever needed to preserve euro.
- Dow futures up 56 or 0.4%, Nasdaq up 10 or 0.4%
- Italian stocks up 2%, Spain up 1.3%, DAX uup 0.4%, CAC up 1.1%
- Euro spikes to 1.2180, NY oil trims drop to 15c or 0.2% (was down 90c or 1%), NY gold unchanged at $1,612/oz (had been down $7.80 or 0.5% at $1,604)
- 10-yr Treasury yield rises to 1.42%
A quick Reuiters summary of what was said:
European Central Bank President Mario Draghi pledged on Thursday to do whatever was necessary to protect the euro zone from collapse, including fighting unreasonably high government borrowing costs.
"Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough," he told an investment conference in London.
"To the extent that the size of the sovereign premia (borrowing costs) hamper the functioning of the monetary policy transmission channels, they come within our mandate."
The euro rose and German bond futures turned negative after the comments.
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Anyone seen my shirt? seem to have lost it again.
Your shirt is on, its your pants that are missing again!
Would Draghi resign from his position and denounce Goldman Sachs to save the Euro? (You know, ANYTHING)
I thought not.
Meanwhile, Draghi thinking to himself:
We are fucked.
We are fucked.
We are fucked.
"When it becomes serious, you have to lie," Juncker
"I don't think Spain will need any kind of external support."
— Jean-Claude Juncker, via Reuters, 17 April 2012.
"We decide on something, then put in the room and wait a while to see what happens. If there is no bluster or uprising, because most people cannot grasp what has been decided, then we go on - step by step until there is no return."
— Jean-Claude Juncker in „Die Brüsseler Republik“, Der SPIEGEL, issue from 27 December 1999, p.136.
In a whorehouse, you dont worry about getting fucked.
Off Topic but...
WTF just happened to Gold price in USD?!?
That's not OT if you think about it.
Umm, no offense but it's exactly what this news states - Euro up, dollar down, therefore gold up.
Europeans realised that Benny boy has been printing on the low low.
Colonies... they will never learn!
Someone unplugged the computer that controls the automated naked short selling algo.
They actually thought they were unplugging the water cooler machine...
Just as soon as they boot it up again everything will be back to normal,nothing to see here, move along...
Sorry Mario, but the princess is in another castle....
"Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough,"
Draghi just gave the agreed-upon signal for LTRO3.
"believe me, it will be enough"
Yep sit back Bernanke and put your feet up. It's all good until election time.
Might as well force the Euros to go first on the Big Print, if only to see what happens for when it is our time.
Coming soon: Big Print in Euroland plus, in exchange, all of Europe will absolutely and permanently surrender their banking sovereignty to Germany, and Germany will have finally won control of the Continent. Greece will default, but keep the Euro and continue as a minimally funded, austerity plagued stepchild (as will Spain and eventually Italy).
Believe or not, the right bet will be to be long the Euro - for the time being.
That will be the deal. Interestingly enough, it won't solve the debt problem.
This is all because Biderman went 100% short this week.
Angie too busy sleeping off her Cristal hangover at the Bayreuth festival to say "NEIN" immediately.
How do you like them for onions? (EUR/CHF still not budging though, which probably means its real value is now somewhere around 0.6000...i keep bids around 12002 and scalping 1.2010, easy money until it's not)
Jawbone this, jawbone that...
jawbone attached to the assbone, assbone attached to the mouthbone
So you see as they need desperatly eur to go down otherwise if eur go back to 1.25 the sp500 will have to go to 100 000
he say "we will do anything to preserve euro "...meen we will print Euro untill we have ink
and euro just rise to 1.230 ..LOL
market is superirational !!!
He prefaced that with - "WITHIN OUR MANDATE". That mandate has always stopped them from doing anything useful as their mandate is only to fight inflation.
That's why the Euro crisis has never resulted in money printing, and still won't. Tough talk however, is free.
A 15 year old currency bloc is irreversible.
Shit Central Bankers say...
Amongst countries and cultures that have been at all out war, twice, in the last 90 years resulting in over 50M civilian deaths.
It's all gonna work out. Lots of love there.
"Irreversible," they keep using that word. I do not think it means what they think it means.
http://www.youtube.com/watch?v=1-b7RmmMJeo
Lather, rinse, & repeat.
Get to work Mr.Chairman
Great, just great!
Draghi says the rudder is broken and the navigation equipment is lost but we will steer the ship to safety.
the markets are absolutely retarded at the moment, draghi has said NOTHING, yet i suppose some coked up frat boy and his algo are thinking draghi said x = buy eur/usd. what on earth could draghi do except print? The last two spikes in eur/usd have been caused by people saying absolutely nothing at all, amazing.
Probably the ECB, BIS and other friends were buying in tandem with the speech. Getting out now.
It's all theater for a somnambulant public.
i dont trust this movement....
Really? It seems perfectly reasonable.
Those silly machines are at it again.
Short EUR/USD @ 1.2150.........this pissant ain't gonna shake me out.
Sad when comments like his cause this shit to happen. Not on solid data - only on words.
Hopium...2012's answer to "growth".
Print money.....who would have thought this...this....was how people "make money"
Lunacy....
10YR US Treasuries dipped just below 1.4 right before his announcement. He's just gatekeeping for the Bernanke.
the reality is he is right... US debt is much larger than Spains.. If the ECB buys Spanish bonds (since they are Spains central banks not just Germany's and suppose to be independant) Treasuries and bunds will get hurt.
The fact he has favoured Germany over Spain for 6 months is a disgrace..
Look out US if they do buy Spain bonds ever at 20% of the rate the fed buys. Tres will be introuble and US debt will be exposed.
THe US issued 100 bill this week Spain's just trying to issue 5-7 bill a month ...
LTRO was a two time proposal the FED is loaning unlimited at 0% (with no change until 2014 ) ahh right
so an unlimited two year loan ...sounds familiar except.. US is any amont any time...
Good luck with the higher rates..
Merkel must be away on holiday... no end to the mischief Draghi gets into
He's gonna get a lickin' when she gets back.
He already got flashed by Merkel in the last summit.
Draghi "Change in euro-zone membership wouldn’t affect value of euro investments "
what does this mean ?
is Grexit on the move ?
That is definitely a loaded statement deserving of a follow up question or two.Just reassuring blather I believe.If things are semi chaotic now just wait till there is a messy Euroland divorce with no prenup.
And free Spiderman towels for everyone!
17 ES points straight up on this. The criminal syndicate is looking to sell this morning, and would like better prices. Never mind about zero market credibility...just run it up the flag pole.
Good grief. It will take generations to find someone dumb enough to buy into these markets. Way to go Wall Street! Nice work Banana Republic Bernanke!
LOL! The BlowHorn [CNBC] just called this Draghi comment "some serious news." Because, of course, we all know that if some central banker somewhere wants something, then it is so. Just sureal.
This is gonna be one heck of a wicked candle on the daily chart, that's for sure.
Com'on brother Engineer...think positive. This is going to be a great selling opportunity.
Pathetic, absolutely pathetic.
DavidC
"DRAGHI SAYS SHARING SOVEREIGNTY ON EU LEVEL TO COME"
May you be hung under the bridge to austerity at a Spidey-towel
I found this comment to be interesting- "sharing"- Fuck you Mario Draghi
Can you imagine trying to explain to someone new to trading how the spike plays out, "well what happens is when the euro is doing badly against the dollar, the ecb or the fed just wheel out some mouthpiece to say something, then we get a major spike" "so i buy " "no you wait about 3 hours see where the price is and short" "thats how efficient markets work?" "no, just theese markets"
Careful, Draghi is prepairing bigger moves. It's a matter of a couple of months that ESM and/or EFSF will have bank status where they get financing from ECB. Germany is very happy with actual situation, EURUSD @ 1.21, they did their homework, the Anglosaxons def. not. Road will be bumpy, election year. As long as the London crowd is short EUR and short DAX, no way that european markets will collapse. Too easy. Wait and see.
But but I thought Greece was leaving last friday, last week, last month, last year?!
There will be no Grexit whilst the Euro (Yes, that pesky trasactional currency) is still in existance.
Say Greece default and kill a few US/UK banks like Iceland did, maybe they will, but leave the Euro? Never gonna happen. Why? Answer this -> Do they stop you from using the USD day-to-day if you default on your mortgage?
Off Topic but...
WTF just happened to Gold price in USD?!?
Euro up, Dollar down, Gold up.
DavidC
They will knock gold down David. Give em a few mins. Who needs gold when everything is fine.
Was expecting something like this as I have been observing lately that the Gold prices in EUR, CHF and USD were not so much in sync.
Draghi is a Blowhard! I can't wait for the lousy US jobs #'s in a couple hours to plaster the markets! I hope they come in just a little weak. Then the dollar will rally, because the Bernanke crack heads won't have their QE guarantee!
"Hot air, lie, hot air, waffle, lie, waffle, lie"
Jobless claim must be over 400k to be such in panic already
bull trap
Wow, that's damn effective bullshit.
Euro short oportunity !!!
dont miss this one
Turned on CNBC this morning to see Quick and LIESman saying about Draghi's comments- "This is big" and almost threw a brick thru the TV. Now I remember why I quit watching this shitshow
Jeesus H Christ "Hatter" I was thinking the same thing! Liesman and his Butt Pirate libtard pals, soft talking the Euro zone as usual!
I have yet to figure out how when Draghi basically admits they will expand the EUR supply, the USD goes down.
On another note, headline algos are easily tricked
Bolded for the actual key to this is much ado about nothing.
No doubt...panic button was hit
Ooops, he pushed up Gold hard as well......
BTW this is exactly what Robotrader just recently mentioned ... a spike north due to another round of hot air talk.
On the other hand this type of volatility is exactly what finally leads to market crashes.
And one more wild guess - the next round of bad news is just around the corner. Because otherwise the next plunge would have violated major trendlines. Now there's some cushion ... and Nasdaq in comparision with the DOW doesn't buy it at all.
New lows within next 1-2 weeks.
But from the amount of reaction - I conclude that it is pretty clear, that we have reached pain levels. And that 1.19-1.20 will be vigorously defended. Today probably was the first CB shot. And likely there are more to come.
Draghi had to do something to stop the freefall. Now they're talking about buying Spain and Italy bonds. So the supernationals step in, start buying and the retail traffic follows, a couple months down the road when S & I default (but a non credit event) on these notes the supernationals will be made whole and all losses will be dumped on others. Fool me once (Greece) shame on you, fool me twice, shame on me!
Mothball it and lock it away?
Draghi looking in the mirror was too hard, I am the most beautiful man in the world tell me tell me., yes and Ben and Timmy say yes yes you are.
this is the best the EU could come up with hope and promise, the ship is sinking but we are working on saving the !1st class.
then i guess the short ban on the banks will be lifted cause all is ok .right? this is just more than comical.
I think everyone on here is just jealous. I mean just look at that bellweather Dow Chemical this am. It is a more accurate indicator that everything is fantast......oh wait. Whoops.
the cost will be germany and netherland AAA rating
All I know, I'm kicking myself in the ass, for not listening to Bruce Krasting, a couple of days ago, when he suggested going flat the Euro! Crap!
Drahgi waited for the Germans to go on vacation.
And now waiting for the responce :)
FORGET ABOUT LIBOR MANIP AND RIGGING THIS IS WHAT WE CALL MARKET'S MANIP
It just proves what a scam and junkie addicted to free money this 'market' is, that even the hint of more of the same by one of the drug pushers sends an adrenaline rush to the addicted
I don't know why I keep shorting, knowing full well that they'll keep pumping.
I think I have a condition.
you are a realist and judge the facts correctly but don't take into account how desperate the rats are!
Shame theese days it counts for nothing
Here's a market moving headline- Geithner, Bernanke and Paulson indicted for treason. AG will seek death penalty
Gold Bitchez!!!
SPX going to 1365 then..... STFR!!!!
sounds like a good shorting opportunity
Retail is about to get double pwned here, those who reversed their losing shorts, to put on longs, reality will kick in, in about lets say 10 minutes to 2 hours from now.
OMG I've been long since Sunday night / Monday....
I stayed faithful cuz i KNEW this pop was going to happen. Those 8 hour bars were begging for this. This is the result of 2 1/2 entire days of foreplay....
yeah man i remember when i saw 8 hour bars and they were like "bro there is gonna be a tsunami"
or like the time i saw the 8 hour bars and they just said "flash crash tommorow"
"The charts are never wrong. However, the chart reader often is"
Fundamental analysis (News, announcements) are nothing more than the fuel which sparks fires built through techincal analysis.
It's ALL about the charts.
That is ridiculous. chart readers act like homeopath's everytime it works its amazing and the other 9/10 times something went wrong. if draghi and nowotny been silent would we still have had this rise? no because you would interpret your charts to mean whatever you like, its like religion make the facts fit your belief.
If draghi said nothing there would've been other "news" that spiked it up...
This move was well overdue and thats why it's so high. If it started on Monday when it should have then it wouldn't have been so drastic.
This is like Bernanke saying, "Texas will now fully support all of California" without checking with the 'ol boys in the oil patch. Something tells me they may not like that idea.
ah yes, otherwise this GS bitch is jobless, right?
First World to ThirdWorld:
whoever feels fuckedup will be fuckedup.
Bye Bye to speculating banksters that wantet to tear down Europe in order to maintain crunching of ten doublewhoppers per day spending the earnings of others.
Get A Life !
Get An Economy besides the US Army and Facebook.
Greetings from Europe
Depends in which country in Europe you live!
I don't think it's worth pursuing a strategy which fights gravity in the long term.
And gravity is: we (incl the US) have economies who are built on too much debt + unfundable social welfare + uncompetitive economies in the periphery with no option to devalue and get cometitive againg (just to name a few of the miseries) ... this needs different cure than Draghi doing "whatever" bullshit and him + politicians promising to save the world the <I forgot to count numbers> time!
Draghi doesn't save us with his gimmickery. He rather pushes our noses deeper in the shit every day! So I don't celebrate...
The only thing Draghi can do, is print euros! Period! No one has any collateral to pledge! The ESM isn't funded or in place.
Europe ready to collapse. Euro rises. USD falls.
http://bullandbearmash.com/index/usd/daily/
More consolidation.
Sheesh, economies are circling the drain and all it takes is some lying ass hat to suggest money printing and all is sunshine and puppy dogs again.
Nope ... you are looking at the magicians hat and not the sleeve. This setup was already baked in ... then the magician pulls out the rabbit and people go ... I can't believe he actually has people clapping when there was no actual rabbit in there. "It doesn't make sense. Zerohead assured me the hat was empty. Now look what happened ... another trading loss. At least there can't be any other rabbits in there."
Hope the big Zero doesn't confuse me again.
The impact of the lies and innuendo as well as actual QEs and Operations Twists is rapidly dwindling. I think the markets due for a shake out here in the next couple of weeks. THEN helicopter Ben will step in for the final QE3 in hopes that it gets us through the election.
Countries around the world are taking on more debt without any fruitful attempts to curb their expenditures. This has resulted in a much more fragile and artificially held up financial system which is on a much shaky ground than it was in 2008. In 2008 companies failed due to excessive leverage and debt and now countries are likely to default because they took on the same bad debt on themselves. The borrowing costs or bond yields for these countries are again at record highs for the year due to their deteriorating financial condition.
A single currency for an economy as strong as Germany on one hand and relatively weaker economies like Greece or Ireland on the other is not sustainable in the long run. The idea of the stronger countries in the Euro zone to keep on bailing out the weaker ones repeatedly will be a difficult one to sell to the citizens of the economically stronger countries. Their is no practical way to save the Euro, the only thing that the politicians can do is to lavishly spend tax payers money towards bailouts which creates a much bigger crises a few months down the line but does not solve anything.
http://www.marketoracle.co.uk/Article35345.html
couldn't agree more +1
DRAGHI SAYS THE EURO IS IRREVERSIBLE
What he meant to say:
THE IMPLOSION OF THE EURO IS IRREVERSIBLE
Well they did it again. Looks like one of those days where we go sideways for 8 hours. F'n mother f'ers.
People of the Earth. I come from the great beyond to deliver the following words: This too shall be faded.
One more lesson way you NEVER hold options overnight.
What does the Rothschilds have to say ?
Thats whats important,right...?
End of the month ramp up. Rinse and repeat.
Cause for all the central bankers to beat their chest and say: "There is nobody more powerful than me!"
He has now said it twice in a week. Wait for the third time, and then see Greece exit.
He has now said it twice in a week. Wait for the third time, and then see Greece exit.
You do all understand that the soap opera known as "All My Euros" is really nothing more than a distraction for the masses while TPTB systematically strip mine the population for every ounce of wealth and energy it can right? And that includes non Europeans as well. Watch the daily fiasco of plots and subplots and keep an eye open for the occasional blown lines of script, but remember that the whole show is for entertainment purposes only, don't try this in your own economy, and above all else do not become so immersed in the program that you forget to live your own life.
bad mistake, let the euro collapse naturally instead of taking everyone along for the ride.
http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/