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Live Webcast Of Draghi Press Conference - Draghi Punts, ECB "MAY" Act In Coming Weeks

Tyler Durden's picture


Summary of what has been said so far: Nothing, just as we said last week. Draghi basically repeated the June 29 summit bottom line that the EFSF should buy PIIGS bonds, the ECB "May" act, which means Germany is still not on board, and that after talking markets up by 5%, he has delivered nothing but a delay. This is a huge blow to his and the ECB's credibility.

* * *

With speculation ripe out of everyone from Reuters to the FT about what Draghi may or may not say, with or without Germany's blessing, the best at this point is just to hand over the microphone to the former Goldmanite. Here is the live webcast of Draghi's press conference. Pay attention as a word out of place will send the EURUSD plunging by 200 pips. Or soaring.

Key prepared highlights on the economy:


And now on to monetary policy:


The punchlines begin: Draghi punts to governments:


And now the open ended:


"MAY" and more:


And the dud:


So nothing today.


And now the Q&A:

  • Draghi says ECB governing council discussed rate cut, not the right time
  • "Largely unchartered waters" regarding negative deposit rates
  • "Monetary policy is independent"
  • Draghi: "any bond buying will be focused on the short part of the yield curve." Forget 5 Year LTRO
  • Draghi "Surprised by amount of attention ESM banking license has received" Uhm, maybe talk to your colleage Nowotny about starting the "attention"
  • Draghi: "Current design of ESM does not allow it to be recognized as a suitable counterparty" And more cold water.

And the punchline again:

  • Draghi says even if we were ready to act now, would not have grounds to do so

Take home: the ECB is now merely a branch office of Buba.


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Thu, 08/02/2012 - 08:31 | 2671551 malikai
malikai's picture

Watch this chump's effect on gold:

Thu, 08/02/2012 - 08:42 | 2671596 Gief Gold Plox
Gief Gold Plox's picture

Draghi's speech in 5 words: May, Maybe, Could, Discuss, Future.

The End.

Thu, 08/02/2012 - 08:57 | 2671684 Xibalba
Xibalba's picture

and he was coached by Tiny Tim all week. 

Thu, 08/02/2012 - 09:16 | 2671778 Muppet of the U...
Muppet of the Universe's picture

I would like to thank mr Draghi for buying my next car.  I would also like to thank the fine work from the gentlemen at Knight Capital for buying me a new house.  Ok.  I'm going to go get drunk.

Thu, 08/02/2012 - 09:21 | 2671801 Gief Gold Plox
Gief Gold Plox's picture

You seem to have quite specific and expensive prerequisites for getting drunk. I'm not as sophisticated, the thought "Shit, I'm sober again" suffices.

Thu, 08/02/2012 - 09:37 | 2671825 Muppet of the U...
Muppet of the Universe's picture

I live in a 550 rent a month apartment and I drive a civic.  In a few months that will change.  I've spent the past 4-5 months going from learning that things can be freaking shorted, to making my own strategies.  I sleep 1 hours for every 8, and my record is 170/25 hours of wake/sleep.  This wasn't a fuckin cakewalk, this was a precursor to prepare to buy as much gold silver land and food as possible.  guns too.

Thu, 08/02/2012 - 09:38 | 2671894 saturn
saturn's picture

Do you think you can stand against "the goverment"?

Thu, 08/02/2012 - 09:56 | 2671989 Muppet of the U...
Muppet of the Universe's picture

I can hide in Brazil or Ecuador :D  I've always wanted to live around the Andes.

Thu, 08/02/2012 - 10:04 | 2672029 saturn
saturn's picture

Ok, sounds kinda cool!


edit: i hope that half of the world is not going to meet there, lol.

Thu, 08/02/2012 - 11:50 | 2672479 steve from virginia
steve from virginia's picture


If yr five feet tall long black hair and speak Quechua you'll do just fine.

Otherwise yr a f**king gringo and will stick out like a thumb/target.

The Ecs don't have to steal anything, simply refuse to let you back on the country. 'Persona non-grata' and back to gringo-land you go.


: )

Thu, 08/02/2012 - 09:39 | 2671901 Gief Gold Plox
Gief Gold Plox's picture

Good on ya, mate. Just don't burn yourself out too soon with that sleep/awake cycle.

Thu, 08/02/2012 - 09:03 | 2671703 malikai
malikai's picture

Seriously. But his words have been used as a perfect setup for the Stop-Hunt Chainsaw.


Thu, 08/02/2012 - 09:18 | 2671783 bank guy in Brussels
bank guy in Brussels's picture

Indeed, Draghi is kicking the can, while it can still be kicked ...

Don't think this is so much of a 'downer' for Draghi's credibility as the ZH meme is claiming ... he is playing an almost expected role in the continuing play-act of the euro-game ...

Sophisticated players are quickly figuring Draghi is setting up the post-severe-crisis fix ... and crisis is not severe enough yet

QE and bond-buying and ESM banking licence etc. will indeed come when there is a real Urgent PUSH to do that ... when German banks and insurers and pension funds need to be saved, as well as Spain and Italy ... a much bigger 'crisis' is needed before Germany will 'reluctantly' climb aboard to save its own butt

Germans and Draghi are not even necessarily real 'opponents' here ... just partners with temporarily 'opposing'  roles in the ongoing euro-farce ... somewhat fake 'opponents' like Obama and Romney in USA ...

As Jim Sinclair has long said:

« QE is coming. About that there is no doubt. ... but not on anyone's schedule ... »

Thu, 08/02/2012 - 09:27 | 2671823 disabledvet
disabledvet's picture

This is a site that loves their gold. More so it would appear than their country. "country wins"...and there is no do-over this time.

Thu, 08/02/2012 - 11:05 | 2672282 JeffB
JeffB's picture

I think you're painting with a very broad brush there, disabledvet.

It's hard to turn away from a trainwreck one can see coming far ahead of time. The vast majority of those on here have no power to stop that trainwreck, but are probably taking steps to mitigate the carnage in the aftermath.

I would bet the vast majority wish those in control would come to their senses and at least do what they could to slow the trains down. In fact, many have tried jumping up and down and screaming to get their attention, and have gotten more politically involved among other things, but it's still basically out of our control at the moment.

In such situations gallows humor is quite common. Trying to make the best of a bad situation shouldn't be a crime. Of course there may be a few who might try to take advantage of the situation in a criminal or immoral way, but I would hardly paint the whole crowd with such a broad brush, especially so while waiting for the crash.

Thu, 08/02/2012 - 09:43 | 2671895 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Draghi is a cheapskate...another deadbeat. Debt Deflation is going to eat the EU bankers alive; maybe even knock a million (or two) off their Mega-Bonuses this year.

However, imho, there is no doubt he will print Trillions to bail out the banks eventually. There is really no other way for him.

Thu, 08/02/2012 - 14:25 | 2673275 MillionDollarBoner_
MillionDollarBoner_'s picture

Stoppit with the "former Goldmanite" already!

Nothing "former" about him.

Once a Made Man, always a Made Man

Thu, 08/02/2012 - 08:33 | 2671556 OttoMBMP
OttoMBMP's picture

Italian is a beautyful language.

English with a Draghi accent sounds awful to me.

Thu, 08/02/2012 - 08:43 | 2671590 Zero Govt
Zero Govt's picture

neither Draghi nor Bernanke speak English, it's called "snakeoil" spoken out both sides of the mouth was perfected in banking and large global accountancy practices who provide consultancy services to our brilliant political leaders for €billions in taxpayer fees whose results can be seen coming to fruition all around Europe right now 

you might know this languages more common name as "bullshit" 

Thu, 08/02/2012 - 08:46 | 2671628 fonzannoon
fonzannoon's picture

Sing it loud fellas

You can't hide your lyin' eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide your lyin eyes

On the other side of town a bernak is waiting
with a printing press no one could steal
Draghi drives on through the night anticipating
'Cause he makes him feel the way he used to feel

He rushes to his arms,
They fall together
he whispers that it's only for awhile
he swears that soon he'll be comin' back forever
he pulls away and leaves him with a smile

You can't hide your lyin' eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide you lyin' eyes

Thu, 08/02/2012 - 08:33 | 2671557 Jlmadyson
Jlmadyson's picture



Utter bullshit.

Thu, 08/02/2012 - 09:41 | 2671917 saturn
saturn's picture

ECB is the guardian of price stability. Did you know?

Thu, 08/02/2012 - 08:35 | 2671564 westboundnup
westboundnup's picture


Thu, 08/02/2012 - 08:57 | 2671682 Mr. Poon
Mr. Poon's picture

I wouldn't say it's "tepid"; it's actually a very active decision.

You see, if they act now, that will move the market once.  But once it's over, it's over, and it's unlikely that they will act again soon.

But if they in effect say "maybe" as they just did, they can then move the market any time they want, just by hinting that they're ready to make good on that "maybe".

In other words, they had the choice between a one-and-done market put, and a renewable option to move the markets, and they clearly chose the latter.

Thu, 08/02/2012 - 08:35 | 2671565 Nussi34
Nussi34's picture

Soeone bomb the ECB please!

Thu, 08/02/2012 - 08:36 | 2671566 Blopper
Blopper's picture

Fuck you, Mario. Fuck youuuu.....

Thu, 08/02/2012 - 08:38 | 2671568 Hype Alert
Hype Alert's picture

And the Algo's go wild.  Do they scan for promises, promises and more promises?

Thu, 08/02/2012 - 09:29 | 2671838 disabledvet
disabledvet's picture

NO. The market SCANS FOR MONEY. "Only in America." Bernanke can light up the cigar...AND ENJOY IT.

Thu, 08/02/2012 - 08:36 | 2671571 LULZBank
LULZBank's picture

Draghi would announce winds and markets will levitate... like it ever was.

Just a hype, "this time its different," when it wont be.

Thu, 08/02/2012 - 08:36 | 2671572 fonzannoon
fonzannoon's picture

we may this we might that we could this.

Thu, 08/02/2012 - 08:40 | 2671597 LULZBank
LULZBank's picture

English is not his first language, you know.

Thu, 08/02/2012 - 08:36 | 2671573 piliage
piliage's picture

In the coming weeks we will design something to do something we need to do to help something. How revolutionary... What a surprise, a load of BS, hot air, and platitudes.

Thu, 08/02/2012 - 08:37 | 2671575 Peter K
Peter K's picture

Plan to plan bitchezzzzzz :)

Thu, 08/02/2012 - 08:38 | 2671583 Jlmadyson
Jlmadyson's picture

No doubt about that!

Thu, 08/02/2012 - 08:39 | 2671582 LULZBank
LULZBank's picture


  • Co-ordinated non-intervention Bitchezz!!!

    Thu, 08/02/2012 - 08:38 | 2671584 Meesohaawnee
    Meesohaawnee's picture

    italy bagdad bob says all is well. Algos go rip!! problem fixed. all time highs.

    Thu, 08/02/2012 - 08:39 | 2671587 timbo_em
    timbo_em's picture

    Weidmann FTW!

    Thu, 08/02/2012 - 08:42 | 2671589 Vincent Vega
    Vincent Vega's picture

    I hope we get a word cloud on this. Promise, ensure, must act, will address, coordinated effort, save the whales, blah blah blah blah blah....

    My grandmother use to tell me: one showing is worth a thousand tellin's.

    Thu, 08/02/2012 - 08:39 | 2671591 chubbar
    chubbar's picture

    He's lost all credibility after all that bluster and nothing to show for it. What a loser. What would make someone in his position say those things when he knew he wouldn't deliver?

    Thu, 08/02/2012 - 08:39 | 2671593 The Axe
    The Axe's picture

    show me the money!!  bitch     who pays??/    gold telling me  its bullshit!!!

    Thu, 08/02/2012 - 08:40 | 2671594 Jlmadyson
    Jlmadyson's picture

    What happened to the Bazooka?

    Not even a pea shooter!

    Thu, 08/02/2012 - 08:40 | 2671598 piliage
    piliage's picture

    And the DAX just dropped like Paris Hilton's panties.

    Thu, 08/02/2012 - 08:40 | 2671599 Piranha
    Piranha's picture

    bend over Draghi

    Thu, 08/02/2012 - 08:41 | 2671601 Seorse Gorog fr...
    Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

    I've heard enough. Fading this.

    Thu, 08/02/2012 - 08:41 | 2671602 Mr_Wonderful
    Mr_Wonderful's picture

    A big nothing. Red  day ahead.

    Thu, 08/02/2012 - 08:41 | 2671605 TheHamburglar
    TheHamburglar's picture

    ES plummeting with every word that comes out of his mouth

    Thu, 08/02/2012 - 08:42 | 2671610 Hype Alert
    Hype Alert's picture

    Ok, so now that big nothing has been served up, we can wait in suspense for tomorrow's labor numbers. 

    Thu, 08/02/2012 - 08:43 | 2671611 Jim in MN
    Jim in MN's picture

    Secret Decoder Ring Special Translation:


    "Last night, the zee wee hours of zee morning time, I ***Mario*** saved the Euro.  I performed this feat in my bathtub with my impressive fleet of rubber dinghies...I call them 'triremes' but you know....

    You missed this, my Euro saving?  Ooooh but it was really something.  Those Persian duckies never stood a chance.


    Water, please...."

    Thu, 08/02/2012 - 08:43 | 2671615 moskov
    moskov's picture

    I wonder How Bottomless can Euro goes in exchange rate. How much can average Europeans suffer inflation.

    Thu, 08/02/2012 - 08:52 | 2671617 RobotTrader
    RobotTrader's picture

    Wow, I bet thousands of HFT hedge funds blow up today.


    Insane volatility.

    Bonds and USDX are going completely vertical!!!

    Thu, 08/02/2012 - 08:44 | 2671618 dogbreath
    dogbreath's picture

    "efficient and flexible labour markets"

    Thu, 08/02/2012 - 08:54 | 2671657 Zero Govt
    Zero Govt's picture

    Draghis talking about potential (ie. a fantasy)

    right now those efficient and flexible labour markets are suffocating under 2,400 new laws, regulations and human rights garbage over the past 14 years of EU 'emancipation' (Marxism)

    but Draghi and the EC mean well even if they talk total non-stop crap

    Thu, 08/02/2012 - 08:44 | 2671619 rvremi
    rvremi's picture

    Tomorrow we'll shave for free...

    Thu, 08/02/2012 - 08:45 | 2671623 RobotTrader
    RobotTrader's picture

    Hilarious, now the key "Black Swan" event everbody must watch out for is "Gum-Flapping".



    Thu, 08/02/2012 - 08:58 | 2671673 Vincent Vega
    Vincent Vega's picture

    "pie hole", "jaw boning", and now add "gum flapping" to the list... Latent cocksucker tendencies???

    Thu, 08/02/2012 - 08:46 | 2671629 Hype Alert
    Hype Alert's picture

    Next rumor please.

    Thu, 08/02/2012 - 08:49 | 2671631 Dr. Engali
    Dr. Engali's picture

    It's like a thousand high frequent robots cried out in the Knight (Capital)and were suddenly silenced...

    Thu, 08/02/2012 - 08:46 | 2671632 the not so migh...
    the not so mighty maximiza's picture

    Guys you don't get this, Doing Nothing is the plan to fix this.   The DN plan is pure awesome.

    Thu, 08/02/2012 - 08:46 | 2671633 lizzy36
    lizzy36's picture

    We promise to promise more promises. We plan to plan for more summits.

    Nothing like "preserving a currency" with a promise and a plan for a plan!

    The Eurocrats are brilliant.

    Thu, 08/02/2012 - 09:29 | 2671839 centerline
    centerline's picture


    What's for dinner tonight?  A nothing burger.

    What's for dinner tomorrow night?  A nothing burger.


    And somehow they keep things rolling.  Goes to show how complex and desperate the situation really is.

    Thu, 08/02/2012 - 08:47 | 2671635 virgilcaine
    virgilcaine's picture

    Mkts went red/green then red again.. this is awesome.

    Thu, 08/02/2012 - 08:47 | 2671636 NEOSERF
    NEOSERF's picture

    So let's look at this last 4 years across  the world at 30,000 feet:

    1.  Create 3 decades of misalligned investment, fraud and poor central bank planning which creates an artificial 5% GDP growth rate and ridiculous amounts of building in housing and infrastructure that can't be supported especially with aging demographic

    2.  As reality sets in, poor assets stop performing first and GDP slows

    3. Banks have three choices worldwide: move assets to bad bank, pretend that assets are still valued correctly, or mark down and have collateral issues or do some version of all three; growth slows to 1%

    4. The "PLAN" worldwide is to buy time because everyone knows if we can just get through this soft patch, growth of 5% will return providing jobs and collateral so printing presses crank up to fill the void

    5.  But even with low rates, ridiculous building, buying and fraud doesn't return and therefor there is no return to 5% growth; fluctuating between -1% and 1% growth means assets continue to be impaired, joblessness grows, political leaders turnover further exacerbating any type of longer term strategery

    6.  Finally debt load so high that cities, towns, counties, regions, individuals, banks, strip malls and countries throw in the towel as bankruptcy doesn't have the stigma it used to and getting out first means return to solvency first...rush to the doors

    We are close to a worldwide Icelandic rush, the Sysphian strategy of constantly fallign further behind as tax revenues fall, gov obligations increase and Non Performing Loans crush the system.  Some right thinking European will stand up and walk away...will it be Greece, Germany, Finland or UK...devaluations are coming.

    Thu, 08/02/2012 - 09:27 | 2671827 Nobody For President
    Nobody For President's picture

    With the exception of putting 'right thinking' and 'Greece' in the same sentence, that was a pretty good overview.

    Thu, 08/02/2012 - 09:35 | 2671871 centerline
    centerline's picture

    Lot of history (tension) in the EU.  Not exactly what one would call a healthy "family."  And of course, one can't ignore the bankster invasion at key levels throughout.

    Thu, 08/02/2012 - 08:48 | 2671637 warezdog
    warezdog's picture

    Today will look tame after tomorrow 's close, default is inevitable and those that have kept their head in the sand thinking this will just magically go away will finally start to take action.


    Thu, 08/02/2012 - 08:48 | 2671639 milanitaly
    milanitaly's picture

    Oh my God. Unbeliveable.

    Come back home Mario. We will try with Mario Balotelli next time.

    Thu, 08/02/2012 - 08:51 | 2671651 magpie
    magpie's picture

    mille grazie

    Thu, 08/02/2012 - 08:48 | 2671641 azzhatter
    azzhatter's picture

    Such a douchenozzle this Draghi. Someone,preferably a woman should just punch him in the cocksucker

    Thu, 08/02/2012 - 08:48 | 2671642 dvsteenk
    dvsteenk's picture

    unbelievable, the guy opens his mouth and CAC40 rises over 1% in less than 1 minute, subsequently drops over 3% in the span of minutes, now back rising 1%

    Thu, 08/02/2012 - 08:49 | 2671645 BeetleBailey
    BeetleBailey's picture

    this fucker cannot even follow the questions....what a turd

    Thu, 08/02/2012 - 08:50 | 2671648 wagthetails
    wagthetails's picture


    Thu, 08/02/2012 - 08:52 | 2671653 virgilcaine
    virgilcaine's picture

    Mario was bluffing.  Everyone can go home now.

    Thu, 08/02/2012 - 08:52 | 2671655 Skip 2 My Lou
    Skip 2 My Lou's picture

    draghi is short for sure!

    Thu, 08/02/2012 - 08:53 | 2671659 DeFeralCat
    DeFeralCat's picture

    I have not seen this big of a swing and miss since Dave Kingman for the Cubs in the seventies.

    Thu, 08/02/2012 - 08:53 | 2671661 Jlmadyson
    Jlmadyson's picture

    Draghi to Bernake: Ball in your court now!

    And what a long month it will be for the Fed.

    The Neverending Story.

    Thu, 08/02/2012 - 08:53 | 2671663 luckylongshot
    luckylongshot's picture

    Watching the rats performing their last rites on the 300 year old ponzi scheme we call the fractional reserve banking system is at least entertaining....what comes next is them abandoning ship because after all they are rats.


    Thu, 08/02/2012 - 09:14 | 2671768 HurricaneSeason
    HurricaneSeason's picture

    I don't give it credit for 300 years. Just since Nixon made the world reserve currency non-redeemable in gold, maybe 40 years.

    Thu, 08/02/2012 - 08:58 | 2671667 Cult_of_Reason
    Cult_of_Reason's picture

    "Believe me" asshole talked up the markets by 4-6% (with help of currupt media) and delivers absolutely nothing.


    Thu, 08/02/2012 - 08:54 | 2671670 Dr. Engali
    Dr. Engali's picture

    Robots don't know what to do. The markets are all over the place.

    Thu, 08/02/2012 - 08:54 | 2671671 rguptatx
    rguptatx's picture

    Tyler posited the EURUSD may swing by 200 pips - it has only swung by 197 pips so far - so Tyler was wrong - lol!

    Thu, 08/02/2012 - 09:34 | 2671867 Seorse Gorog fr...
    Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture


    Thu, 08/02/2012 - 08:56 | 2671678 RobotTrader
    RobotTrader's picture

    ES will drop to 1325 next week, 10-yr. yield will plunge back to 1.39%.

    Thu, 08/02/2012 - 08:57 | 2671683 lizzy36
    lizzy36's picture

    So to re-cap: China is not saving the EU. There is no EUR2-3T in the EFSF (EUR65B as of today), there is not enough colleteral for another LTRO and the ESM may NEVER come into play.

    Good times.

    Thu, 08/02/2012 - 09:33 | 2671860 centerline
    centerline's picture

    And even if the ESM could be implemented, it would be woefully in adequate.


    Thu, 08/02/2012 - 08:57 | 2671686 Byte Me
    Byte Me's picture

    Some days you just have to stick with your shorts - or have your shorts stick with you.

    Thu, 08/02/2012 - 08:58 | 2671691 Jason T
    Jason T's picture

    only the governments can give the licence to print.. or make the deal with the devil as in Faust.  Spirt akin to the devil, the father of lies to do such a thing. 

    Thu, 08/02/2012 - 08:58 | 2671692 RobotTrader
    RobotTrader's picture

    Two guys feeling the most pain and embarrassment right now:


    "General Jim" Sinclair

    Alf Fields

    Thu, 08/02/2012 - 09:09 | 2671746 bank guy in Brussels
    bank guy in Brussels's picture

    Think you are wrong about this, Robot, you are not expressing Jim Sinclair accurately ... and I am one of the people who is open to your presenting your alternative, ZH-contrarian, momo-chasing perspective here

    Sinclair indeed says QE is eventually coming, massive and inevitable, but NOT on a schedule we can predict in any short term ... he specifically said there was no telling about QE today

    Sinclair always says that short-term events are volatile and at times virtually unpredictable and does not try to guide anyone about them

    Sinclair's view is that QE forms may well come out of crisis-pushed urgency, much more than offered up on an easy plate on a particular expected day



    Thu, 08/02/2012 - 09:20 | 2671798 taraxias
    taraxias's picture

    Fuck off troll.

    Growing a little tired of you coming on here telling me yestrday's news

    Fuck off.

    Thu, 08/02/2012 - 08:59 | 2671700 Money 4 Nothing
    Money 4 Nothing's picture

    Meeting for a meeting, plan for a plan... just stick a fork in it and call it done. I say, Shoot the Hostage and get it over with.

    Draghis can promise the world as verbal stimulious, it only get's you so far though. Sounding like a broken record at this point.

    Thu, 08/02/2012 - 08:59 | 2671701 The worst trader
    The worst trader's picture

    Don't wait to long to BTFD!


    Thu, 08/02/2012 - 09:01 | 2671711 ZeroPoint
    ZeroPoint's picture

    So I guess this means Adolph Clinton needs to launch an attack in Germany now?


    Thu, 08/02/2012 - 09:04 | 2671724 SmoothCoolSmoke
    SmoothCoolSmoke's picture

    Draghi previous BS is still net +30 SP points over his current BS.  MFer

    Thu, 08/02/2012 - 09:06 | 2671729 Gavrikon
    Gavrikon's picture

    The asshat speaks.  Out of his ass.  The song remains the same, only the breath smells worse.

    Thu, 08/02/2012 - 09:06 | 2671731 ThunderingTurd
    ThunderingTurd's picture

    I said this last week when he made his comments.  His speech last week was 100% made to allow GS to exit their long Spanish/Italian debt call that they were getting their faces peeled with.  Now that they are out...yields go back up.  So frustratingly obvious.  THEY ARE ALL CRIMINALS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Thu, 08/02/2012 - 09:08 | 2671745 Mr_Wonderful
    Mr_Wonderful's picture

    Everything to tank today - except bonds.

    Thu, 08/02/2012 - 09:09 | 2671747 adr
    adr's picture


    That is all there is left to say. That one person speaking can have this kind of effect. Hundreds of billions wiped out and regained in milliseconds.

    All this algo bullshit has got me thinking about the insane market action recently. Nike has a terrible quarter and the stock plummets, almost as soon as it hits the bottom for the day, it starts right back up on no volume. Human traders and human fund managers sold the stock which drove the price down, but the algos drove it right back up. The same thing happened with Apple. Humans could only affect the stock for a few days.

    If an algo was programmed to hold a stock long, with a long term price target set, it would start bidding the stock up in small increments until it hits the target. A huge drop would result in a very quick stairstep bid pattern. Exactly the pattern you see in Nike's chart.

    With so little human directed volume, the Algos are free to make the market price anything their program alows. Earnings don't matter if a stock drops 10% afterwards, only to regain that loss days later. It looks like losses only stick when a stock is taken off a buying list, like GMCR and Groupon. With the long term price target erased the algos no longer bid the stock up.

    Apple is not going to be erased from any lists so intraday price action has no meaning. It is all algos fighting with each other to hit their programmed price targets. If Goldman wants $710 Apple, it is going to try and get it . JP may want $690 and will try to get that price. IN the end Apple's stock will hit somewhere in between the targets. It won't be based on anything related to business, profit, or sales. Only what a computer was programmed to do.


    Thu, 08/02/2012 - 09:11 | 2671756 NEOSERF
    NEOSERF's picture

    Fool me once, shame on you, fool me twice, shame on me, fool me 32 times, let's just stop fooling around...

    Thu, 08/02/2012 - 09:13 | 2671762 Christoph830
    Christoph830's picture

    A decent jobs number tomorrow and bears will have hit the trifecta

    Thu, 08/02/2012 - 09:13 | 2671766 maxpax
    maxpax's picture

    What a L, this Draghi...



    Thu, 08/02/2012 - 09:16 | 2671776 Jake88
    Jake88's picture

    just btfd

    Thu, 08/02/2012 - 09:20 | 2671799 cosmictrainwreck
    cosmictrainwreck's picture

    sarc, maybe, but who knows? after giant leap up, VXX, UVXY fading fast........

    Thu, 08/02/2012 - 09:17 | 2671780 GMadScientist
    GMadScientist's picture

    thank you german question man!!! you rock!!!

    Thu, 08/02/2012 - 09:18 | 2671782 MFLTucson
    MFLTucson's picture

    How much more of this shit are we supose to swallow?  Get rid of this Golman Sachs plant, they have stolen enough.

    Thu, 08/02/2012 - 09:18 | 2671784 tao400
    tao400's picture

    how many times does people have to be lied to and believe it. it really is amazing

    Thu, 08/02/2012 - 09:19 | 2671791 Hype Alert
    Hype Alert's picture

    Hahaha, how many points were pumped up the stock market's ass in anticipation of the FED and Draghi "announcements"?  The next bigger fool theory in action.


    Even the WSJ had an article on "When Will Retail Investors Call It Quits?" in today's paper. 

    Thu, 08/02/2012 - 09:24 | 2671811 Flaming Ferrari
    Flaming Ferrari's picture

    It would be funny if shorts didn't get so needlessly trashed last week.

    IF markets don't sell off aggressively after this fiasco then it may be it is time for retail to get back in!

    Thu, 08/02/2012 - 09:24 | 2671815 buzzsaw99
    buzzsaw99's picture

    that dude's mouth has been writing checks hizass can't cash

    Thu, 08/02/2012 - 09:25 | 2671817 Jim in MN
    Jim in MN's picture



    Of course, this is getting to be time for the 'market collapse' that sets the stage for whatever 'massive intervention' is really next. 


    Watch out for falling pianos.  Ever seen a drone carrying a piano?  It's really something.  Oh, that's next year?  Sorry, just pretend you don't know what's coming.

    Thu, 08/02/2012 - 09:29 | 2671831 Squid Vicious
    Squid Vicious's picture

    "it's pointless to go short on the Euro..." except that it make you alot of US$

    Thu, 08/02/2012 - 09:40 | 2671914 Instant Wealth
    Instant Wealth's picture

    The last time I took a pointless action, my EUR/USD puts made a lame 46% profit, but the honorable Chairmen seems to have some secret insider knowledge on the topic ...

    Thu, 08/02/2012 - 09:30 | 2671841 drivenZ
    drivenZ's picture

    Draghi says, "it's pointless to go short on the Euro"


    if by "pointless" he means making a shit ton of $, then yes. 

    Thu, 08/02/2012 - 09:31 | 2671847 maxpax
    maxpax's picture

    Yes, Draghi! The EUR will stay in the history books.


    p.s. I am asking myself, now: How he earned his Ph. D.?

    Thu, 08/02/2012 - 09:32 | 2671854 hedgeisforpussies
    hedgeisforpussies's picture

    these fuking clowns!!! why dont you just give the fuk up and shut the fuk up!!! bloody morrons. idiots. take a magnum and shoot urself in the head. 

    Thu, 08/02/2012 - 09:34 | 2671863 Yen Cross
    Yen Cross's picture

     The BUND is down 10bps! If someone doesn't drop another tape bomb in the next 8-10 hours Spanish yields will be back over 7%!

    Thu, 08/02/2012 - 09:35 | 2671868 MrTouchdown
    MrTouchdown's picture

    Draghi: I'm happy about these remarks. I totally PWNED all you bitchez! Don't short the Euro again unless you're ready for that pain. I'm out. PEACE!


    Yup. Modern day gangsta. Instead of a gun, he uses a pen and a press conference. Best entertainment around!

    Thu, 08/02/2012 - 09:36 | 2671876 XRAYD
    XRAYD's picture

    Someone obviously took Mario behind the woodshed.

    Thu, 08/02/2012 - 09:36 | 2671877 Getting Old Sucks
    Getting Old Sucks's picture

    Why isn't the Euro at fitty cents?

    Thu, 08/02/2012 - 09:57 | 2671985 Self Trader
    Self Trader's picture

    Meanwhile in Palo Alto ...

    Damn $ 10 handle approaching fast !

    Thu, 08/02/2012 - 09:59 | 2672005 Snakeeyes
    Snakeeyes's picture

    This was EXACTLY like Bernanke's speech yesterday. "Hiow about NO!" but maybe later.

    Thu, 08/02/2012 - 10:12 | 2672063 Gordon_Gekko
    Gordon_Gekko's picture

    Draghi is an asshole MORON puppet. I HATE knowing so much.

    Why oh why didn't I take the fucking blue pill (or was that the red?)?

    Thu, 08/02/2012 - 11:51 | 2672483 Joebloinvestor
    Joebloinvestor's picture

    "Design modalities"

    I knew the ECB sounded like a Nigerian SCAM.

    Thu, 08/02/2012 - 12:00 | 2672527 steve from virginia
    steve from virginia's picture




    Jeezus children get with it.


    The problem is a non-productive industrial economy. It cannot pay for itself.


    This economy needs endless credit subsidies. Credit is now too expensive so are inputs. Inputs are capital, we are capital constrained. We built an elaborate toy that doesn't work because the battery is dead. (... and there are no more batteries to be had.)


    Draghi cannot print oil or useful things for citizens to do. Best for all to 'give it up' and prepare for what comes next: conservation by other means.


    Draghi cannot even print money. The central banks are collateral constrained and cannot leverage. That the CBs appear to do so is the cause of ongoing bank runs in Europe. A central bank that lends is no longer a central (reserve) bank rather another (insolvent) commercial lender. When the CB leverages, every bank is broke for the same reason as all others. There is no lender of last resort.


    Don't expect any central banker to do anything more. They can't.



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