Europe Regurgitates Its Schrodinger Monetary Bazooka Policy

Tyler Durden's picture

It seems the 'we -really-want-it-but please-don't-blame-us-when-it-all-goes-pear-shaped' meme continues in Europe as ECB's Asmussen adds his own peculiar mix of talking out of both sides of his mouth, (via Bloomberg):

  • *ASMUSSEN SAYS DOUBTS ABOUT EURO'S SURVIVAL UNACCEPTABLE FOR ECB
  • *ASMUSSEN SAYS ECB STAFF STILL WORKING ON DETAILS OF BOND PLAN, WILL ADDRESS SENIORITY CONCERNS
  • *ASMUSSEN: ECB WILL STRICTLY SEPARATE MON. POL., SUPERVISION ROLES
  • *ASMUSSEN SAYS GREECE NEEDS TO MAKE FURTHER REFORM EFFORTS

but

  • *ASMUSSEN SAYS ECB CAN'T PAY FOR FISCAL POLICY MISTAKES
  • *ASMUSSEN: WE WON'T TAKE SUPERVISOR RESPONSIBILITY WITHOUT TOOLS
  • *ASMUSSEN SAYS HE PREFERS BAILOUT FUND TO BUY BONDS BEFORE ECB

Clearly there is still ongoing uncertainty and confrontation within the governing council - and it is obviously not just Weidmann.

Market response - not a blip in ES or EURUSD!

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Mr Lennon Hendrix's picture

This is like watching Keeping up with the Kardasians.

maxmad's picture

Actually its like watching Intervention, only that the patient keeps relapsing during the show!

ParkAveFlasher's picture

lol Mr. LH, how about Keeping Up With The Keynesians?

slaughterer's picture

Ever since Michael Lewis did the favor of featuring bald-headed Assmussen in "Boomerang," the dick has let it get to his head, thinking he can play with markets.   To consider this idiot is a substitute for Juergen Stark, you find out how stupid Europe has gotten this year.  Hey ASSMUSSEN, grow some hair.    

CrashisOptimistic's picture

"ASMUSSEN SAYS ECB STAFF STILL WORKING ON DETAILS OF BOND PLAN, WILL ADDRESS SENIORITY CONCERNS"

 

This is the killer.  

If the ECB buys bonds, it must have seniority, and that moment all the private bond holders realize another Greek PSI structure is about to be imposed in Spain and THEY WILL DUMP.  En masse.  They will get the hell out and undo any yield lowering the ECB might have managed (and you do have to ask yourself if the ECB dares do anything at all with Brent at $115).  Remember, the ECB, EU and IMF immunized themselves from the Greek PSI that wiped out bond holders.  If private bond holders smell it again, they will be out the door like a rifle shot.

If the ECB decides it won't have seniority, then they are by definition prioritizing banks that hold bonds above taxpayers.  There is no way any parliament will accept this.

 

The Greek PSI that wiped out private bond holders may evolve to be the step that destroyed Europe.


AndrewJackson's picture

Completely Agree. Right now TPTB are doing everything and anything to just keep the ponzi going. This market is really hillarious, one day they are worried about the imminent collapse of the euro and the next day everything is fine and dandy. S&P is at its highs when the entire world is one big debt funneling circle jerk. When it will all crash and some sense of reallity appears is anyones guess though.

daily bread's picture

No one wants to "fix things" in any truly long-term manner.  And no

one wants to take the blame for doing anything that pushes the

system over the brink.  A perfect recipe for stasis -- where only a

black swan can tip the equilibrium and make a difference.

deez nutz's picture

No one wants to "fix things" in any truly long-term manner.

please explain what and how it can be fixed? I don't see how a big party on credit for over 10 yrs is easily fixable. 

Look at the U.S. government involved in almost every phase of lending (mortgage, student loans, cars, etc....)  This is the twilight of a debt ponzi and it's global!!  Central banks are trying to cover the markets!!  This whole planet is a huge bug in search of a giant windshield to splatter upon.

Look at the Greeks America, it's you in a few years!!!

 

Debtonation's picture

Would Europe just explode already.

ParkAveFlasher's picture

The ECB is again talking out of its Asmussen.

Hype Alert's picture

*ASMUSSEN SAYS ECB CAN'T PAY FOR FISCAL POLICY MISTAKES

 

This is exactly right, it's all about enabling bad fiscal policy both in Europe and here. 

Bunga Bunga's picture

ECB does not pay for mistakes anyway but the taxpayer.

machineh's picture

One word: SNAFU (Situation Normal, All Fucked Up).

Until we reach SNEFU (Situation Normal, Epic Fuck Up).

Dr. Engali's picture

Heh.... Heh.... Heh .... Heh.... He said Asmussen.

Dead Canary's picture

I'm thinking it's about time I got my metal out of my safe deposit box and buried it out back.

d_taco's picture

But there is also good news.

Luckily the UK is not in the EURO zone otherwise the shape of the EURO would even be much worse than it is now.

 

George Osborne 'Will Fail To Stop Rise In Public Debt' Centre For Policy Studies Warns

http://www.huffingtonpost.co.uk/2012/08/27/george-osborne-will-fail-stop...

Or in other word UK debt definitely explode and no it has nothing to do with the Euro

q99x2's picture

Ass Musing sounds good to me.