Mario Draghi Live Webcast

Tyler Durden's picture

At 2:30 pm CET, 8:30 am EST, Mario Draghi will take the podium and either whip out the Bazooka, which may lead to the resignation of Jens Weidmann from the ECB governing council and further unpredictable consequences (the ECB already broke European money markets when it lowered the deposit rate to 0.00%), or a water pistol, in the process destroying any remaining credibility he may have once and for all. More importantly, what today will show is who currently has the upper hand: Goldman, via its assorted money printing muppets, or Germany, for whom Weimar is always one CTRL-P away. Find out as soon as the ECB building fire alarm goes off and when Mario Draghi presents the latest and greatest details of his plans to reporters.

Conference highlights:

  • DRAGHI SAYS INFLATION WILL REMAIN ABOVE 2% IN 2012, TO DROP BELOW 2% IN 2013
  • DRAGHI SAYS INFLATION EXPECTATIONS ARE FIRMLY ANCHORED. 
  • ECB HAS DECIDED ON MODALITY FOR BOND PURCHASES IN SECONDARY MARKET
  • DRAGHI SAYS PURCHASES WILL ADDRESS DISTORTIONS IN BOND MARKETS
  • DRAGHI SAYS ECB WILL HAVE A FULLY EFFECTIVE BACKSTOP
  • DRAGHI SAYS ECB WILL ACT STRICTLY WITHIN ITS MANDATE, ECB ACTS INDEPENDENTLY, EURO IS IRREVERSIBLE
  • DRAGHI SAYS GOVERNMENTS MUST BE READY TO ACTIVATE EFSF, ESM
  • DRAGHI SAYS NEED STRICT CONDITIONALITY
  • DRAGHI SAYS ECB TOOK DECISION ON COLLATERAL

As for the economy, it's a goner:

  • ECB 2013 GDP FORECAST -0.4% TO 1.4%
  • ECB PREV. 2013 GDP FORECAST 0.0% TO 2%
  • ECB 2012 GDP FORECAST -0.6% TO -0.2%
  • ECB CUTS 2012 GDP FORECAST TO -0.4% FROM -0.1%
  • ECB 2012 INFLATION FORECAST 2.4% TO 2.6%

The SMP 2.0 is called OMT: Outright Monetary Transactions: the same as SMP 1.0 but only buying bonds under 3 years.

  • DRAGHI SAYS TRANSACTIONS HAVE STRICT CONDITIONALITY ATTACHED
  • DRAGHI SAYS IMF INVOLVEMENT WILL BE SOUGHT
  • DRAGHI SAYS ECB TO CONDUCT TRANSACTIONS IF WARRANTED
  • DRAGHI: ECB MAY TERMINATE ACTIONS IN EVENT OF NON COMPLIANCE - just in case Berlucsoni is reelected
  • DRAGHI SAYS THERE ARE NO EX-ANTE QUANTITATIVE LIMITS

ECB says bonds will be pari passu: unclear if this means retroactive as well, which would make the ECB balance sheet insolvent on Greek bond losses.

  • DRAGHI SAYS TRANSACTIONS WILL BE FULLY STERILIZED

Since SMP 2.0 is now here, SMP 1.0 is history:

  • DRAGHI SAYS SMP IS TERMINATED
  • DRAGHI SAYS LIQUIDITY OF SMP WILL CONTINUE TO BE ABSORBED
  • DRAGHI SAYS ECB WILL HOLD SMP SECURITIES TO MATURITY - in other words, no sales. Ever.

Naturally, Germany said "9".

  • DRAGHI SAYS THERE WAS ONE DISSENTING VIEW

Weidmann resignation next?

Webcast link

 

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knight99's picture

we will find out super mario has no magic mushrooms here we go

GetZeeGold's picture

 

 

No way I'm paying for the live event.....I've seen this movie before.

 

IBelieveInMagic's picture

They'll find a way to kick the can one more time -- all this exhuberent ranting at ZH is just to add to the hysteria to goad the CB's to take action.

I wouldn't short the market on any expectation of failure to act by ECB.

Ratscam's picture

Fuck you, unelected Draghi!

bonderøven-farm ass's picture

It's all about the "Lah-qwid-a-teee"..................................SilVer BITCHEZZ

IBelieveInMagic's picture

They'll keep talking and keep printing. The beauty is that it has not lead to hyperinflation as many have been expecting. One can only stand back in admiration at this slight of hand!

As long as the ME oil is kept in relative check, life appears to be tolerable.

GetZeeGold's picture

 

 

Soooooo kick the F#$%#king can?

 

Do I have that right?

 

silver500's picture

In my view this is a very big kick, the can is now at least a year down the road.  I the next big issues will be outside the Euro Area, in Japan, the UK and the US.  I am now long Euro.

bank guy in Brussels's picture

Fire truck at Frankfurt ECB building as Mario Draghi starts to speak ... seriously ... picture here

http://www.telegraph.co.uk/finance/debt-crisis-live/9523681/Debt-crisis-...

'Pull it'

Ghordius's picture

The Fire trucks are there to provide extra liquidity, of course. btw, the telegraph article was disappointing (as often)

1fortheroad's picture

DRAGHI SAYS KISS MY BONITO ARSE

 

 

LongSoupLine's picture

If Goldma...er ECB's Drahgi disappoints, I'm loading up on the PM dip.  If not, well, I'll enjoy the ramp on my stockpile.

Gief Gold Plox's picture

What's your buy price if it's not a secret? I ask because I too am waiting for the same dip.

LongSoupLine's picture

Silver - I will scale purchase.  30.60, and if break below 30.50 or so I'll wait for waterfall to 29.50, then 28.60.  I'm patient...this is a long term process, not a trade.

Gief Gold Plox's picture

I am all for the long term process, it's just that I'm getting increasingly jumpy holding paper on hand. Don't like paper.

eclectic syncretist's picture

if you are truly for the long term process of holding PM you should have bought already!

You still have time to catch the next leg up, but time is running out.  Gold and silver have been consolidating for nearly a year and are on the cusp of a breakout.  There is always the possibility of another central bank smackdown but you can be pretty sure that there are a lot of people waiting on the sidelines for something like that just like you are. 

The central banks openly inflating means the value of currency is going down relative to PM.  Plain and simple.

HelluvaEngineer's picture

Exactly right.  Everyone knows that the CBs will print next month.  If they don't, it will be the month after that.

Mercury's picture

Water pistol.

But you gotta love the rock video “cinematography” here: cutaways! crowd shots! close-ups of pensive gestures! the illusion of action! the sea parting for the stars!   it's…it's...

 

…empty bureaucratic droning in front of poured cement columns.

 

Its_the_economy_stupid's picture

I feel and cuddly just watching the Round Table participants. All will be well.

Its_the_economy_stupid's picture

Strike that. We're fugged.

Shelby Moore III's picture

The article presents a false dichotomy. Both Germany and Goldman are still in the driver's seat, and they both want the same outcome, which is subservient debt slaves in a new fiscally unified Europe. The bond buying program is an economic implosion and debt maximization program. It is not reflationary and the market will figure this out eventually.

rwe2late's picture

Shelby

Who is this "Germany" you mention?

I thought the German banksters want their questionable loans repaid by assets and servitude( same as the other members of the global cartel, err "community").

I thought German industry was export oriented and has found agreeable the current arrangement of propping up its customers. Do they want a "strong deutschmark"?

I doubt the Germans in the sense of the average citizen are in charge. Or is the German government, unlike the other Western nations, not run by a financial oligarchy?

Will "Germany" take over NATO, the IMF, the World Bank, the EU, etc. and "rule" Europe?

I doubt the loyalties to the "nation" will trump the commitment to the interconnected and interdependent global corporations and rackets.

Boilermaker's picture

Let's jack up the ES anyway!!!!

HelluvaEngineer's picture

Well, it is Thursday after all!

Itch's picture

Whats all this about the fire alarm i heard...jesus is that what the rumors are amounting to now? Things are becomming very surreal indeed.

Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

I wouldnt be surprised if the markets rally on nothing, deferring hope to Gentle Ben again and the German constitutional cour.

Ponzi_Scheme's picture

Won't CTRL-P cause inflation that will crush the unemployed ?.. Oh, I forgot... That's what food stamps from China are for.

We need more Liz Warrdn giving these bankers a stern talking to.

teahouse's picture

here we go...

 

GetZeeGold's picture

 

 

Hell yes......this it IT!

 

JSD's picture

I hope they'll be playing this music during the press conference.

JSD's picture

So what you're saying is...

spanish inquisition's picture

There is a chance, and that......IOU's are just like money.... I don't want to put words on your fingertips, but are you proposing that Draghi is going to start issuing IOU's for bank debt? Brilliant!

SLOMO66's picture

Is it me? Or is there nothing new here?....

teahouse's picture

we have seen the movie in july...he is not fully covered 

buzzsaw99's picture

if venus de milo had arms she would be flipping draghi the double bird right about now

Bernankenstein's picture

Bernank here,

"Bong" buying program, per CNBC.com website link. I fully support it.

"ECB's Draghi: Governing Council Has Decided on Sovereign Bong Buying Program; Jobless Claims Fall (click for more on jobs)" Well dang, link was taken down. It was spectacularly funny.

fonzannoon's picture

treasuries selling off....wtf

dingoj's picture

gold and EUR not too happy with this Eurospeak bullshit!

Conditionality, bitches!

FischerBlack's picture

He had the opportunity to call the program Monetary Open Market Operations, aka MOMO. He missed that opportunity and I'm disappointed.

Yen Cross's picture

 This is nothing but a rehash of the same old shit! Nothing new here, other than a new accronym.

buzzsaw99's picture

a great big nothingburger with nothing on the side

Howdan's picture

Which we all know means for the market.................(EVERYBODY TOGETHER NOW) : BULLISH!!! Green screens all round kidz

DOT's picture

Monti says OMT