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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Thu, 09/06/2012 - 08:19 | 2767589 knight99
knight99's picture

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

Thu, 09/06/2012 - 08:22 | 2767598 GetZeeGold
GetZeeGold's picture

 

 

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

 

Thu, 09/06/2012 - 08:28 | 2767614 IBelieveInMagic
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.

Thu, 09/06/2012 - 08:32 | 2767629 flacon
flacon's picture

Baghdad Bob is back! 

Thu, 09/06/2012 - 08:44 | 2767681 Ratscam
Ratscam's picture

Fuck you, unelected Draghi!

Thu, 09/06/2012 - 08:59 | 2767731 stocktivity
stocktivity's picture

It's all Bullshit!

Thu, 09/06/2012 - 09:10 | 2767772 bonderøven-farm ass
bonderøven-farm ass's picture

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

Thu, 09/06/2012 - 09:08 | 2767764 IBelieveInMagic
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.

Thu, 09/06/2012 - 08:33 | 2767634 GetZeeGold
GetZeeGold's picture

 

 

Soooooo kick the F#$%#king can?

 

Do I have that right?

 

Thu, 09/06/2012 - 08:40 | 2767663 GolfHatesMe
GolfHatesMe's picture

KFTC

 

Thu, 09/06/2012 - 09:33 | 2767845 silver500
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.

Thu, 09/06/2012 - 08:29 | 2767619 bank guy in Brussels
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'

Thu, 09/06/2012 - 08:34 | 2767639 Ghordius
Ghordius's picture

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

Thu, 09/06/2012 - 09:09 | 2767769 1fortheroad
1fortheroad's picture

DRAGHI SAYS KISS MY BONITO ARSE

 

 

Thu, 09/06/2012 - 08:20 | 2767592 LongSoupLine
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.

Thu, 09/06/2012 - 08:32 | 2767631 Gief Gold Plox
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.

Thu, 09/06/2012 - 08:43 | 2767678 LongSoupLine
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.

Thu, 09/06/2012 - 08:47 | 2767689 Gief Gold Plox
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.

Thu, 09/06/2012 - 09:17 | 2767788 eclectic syncretist
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.

Thu, 09/06/2012 - 08:38 | 2767658 HelluvaEngineer
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.

Thu, 09/06/2012 - 08:32 | 2767594 Mercury
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.

 

Thu, 09/06/2012 - 08:21 | 2767597 Its_the_economy...
Its_the_economy_stupid's picture

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

Thu, 09/06/2012 - 08:22 | 2767599 Its_the_economy...
Its_the_economy_stupid's picture

Strike that. We're fugged.

Thu, 09/06/2012 - 08:22 | 2767600 Shelby Moore III
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.

Thu, 09/06/2012 - 08:26 | 2767610 Its_the_economy...
Its_the_economy_stupid's picture

Doh!

Thu, 09/06/2012 - 09:09 | 2767770 rwe2late
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.

Thu, 09/06/2012 - 08:25 | 2767605 Boilermaker
Boilermaker's picture

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

Thu, 09/06/2012 - 08:40 | 2767664 HelluvaEngineer
HelluvaEngineer's picture

Well, it is Thursday after all!

Thu, 09/06/2012 - 08:27 | 2767611 Itch
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.

Thu, 09/06/2012 - 08:27 | 2767612 Seorse Gorog fr...
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.

Thu, 09/06/2012 - 08:27 | 2767613 Ponzi_Scheme
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.

Thu, 09/06/2012 - 08:28 | 2767618 teahouse
teahouse's picture

here we go...

 

Thu, 09/06/2012 - 08:39 | 2767660 GetZeeGold
GetZeeGold's picture

 

 

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

 

Thu, 09/06/2012 - 08:30 | 2767622 JSD
JSD's picture

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

Thu, 09/06/2012 - 08:32 | 2767632 1835jackson
1835jackson's picture

yeah circus music

Thu, 09/06/2012 - 08:33 | 2767638 JSD
JSD's picture

So what you're saying is...

Thu, 09/06/2012 - 08:41 | 2767667 spanish inquisition
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!

Thu, 09/06/2012 - 08:35 | 2767648 SLOMO66
SLOMO66's picture

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

Thu, 09/06/2012 - 08:37 | 2767655 teahouse
teahouse's picture

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

Thu, 09/06/2012 - 08:42 | 2767669 buzzsaw99
buzzsaw99's picture

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

Thu, 09/06/2012 - 09:24 | 2767809 Jim in MN
Jim in MN's picture

Priceless.

Thu, 09/06/2012 - 09:21 | 2767671 Bernankenstein
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.

Thu, 09/06/2012 - 08:42 | 2767673 fonzannoon
fonzannoon's picture

treasuries selling off....wtf

Thu, 09/06/2012 - 08:43 | 2767676 dingoj
dingoj's picture

gold and EUR not too happy with this Eurospeak bullshit!

Conditionality, bitches!

Thu, 09/06/2012 - 08:45 | 2767683 FischerBlack
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.

Thu, 09/06/2012 - 08:46 | 2767684 Yen Cross
Yen Cross's picture

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

Thu, 09/06/2012 - 08:49 | 2767693 buzzsaw99
buzzsaw99's picture

a great big nothingburger with nothing on the side

Thu, 09/06/2012 - 08:51 | 2767704 Howdan
Howdan's picture

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

Thu, 09/06/2012 - 08:48 | 2767690 DOT
DOT's picture

Monti says OMT

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