Mission Intractable: ECB Bond-Buying Plan-For-A-Plan Will Self-Destruct In 24 Hours

Tyler Durden's picture

Have no fear; Europe closed and equities leaked so a quick series of European comments are more than required... Bankia, check! Bank backstops, check! ECB Bond-Buying Plan...


So no real idea what they are actually going to do. However!


Nothing new here - and that is why the market is entirely unimpressed...

Bear in mind Morgan Stanley's view of the ECB's meeting next week:

We don’t believe that the conditions for the ECB to start buying government bonds are likely to be met already at the upcoming Governing Council meeting on September 6.


Clearly, the ECB will aim to decide on the parameters of the bond purchase programme at the meeting – even though we doubt that the ECB would start buying on the day or that it will be sharing the full details of the programme with us and the markets at the press conference. Instead, we would expect Mario Draghi to stay vague on the exact shape of the purchase programme for several reasons:

  • First, the ECB tends to never pre-commit to any specific policy action and will like to keep its discretion.
  • Second, the nature of the programme itself is likely to be controversial on the Council where there is likely to be a significant minority of sceptical members.
  • Third, the technical difficulties in determining the exact dose of what is likely to be a powerful, albeit also highly addictive, drug are a serious obstacle to speedy action.

Hence, Eurosystem staff might need more time to prepare and Council members more time to seek a compromise that ideally all (or at least almost all) Council members can support. At the same time, we would expect ECB President Draghi to stress the ECB’s determination “to do all it takes”. Any indication that the purchase programme is capped in size from the start would likely be viewed negatively by markets, we think.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
YesWeKahn's picture

Is drugie still alive?

knukles's picture

Here guys, we want you to consider this plan.  It's incomplete but intangible enough to fulfill some sort of reasonably vague proposal that we think somebody should come up with in order to show that we're planning.  Now, we know it's Labor Day weekend in America which means we should be able to digest this non-invasive bland series of introductory comments and incomplete proposals braced by inane thoughts and contradictory statements which nobody gives much of a rats ass about without too much shit from the folks who don't agree with our pal, Paul Krugman. So we look forward to your evasive and hollow replies shortly.  Or whenever you can get back to us. 

SAT 800's picture

They're going to give Central Banks 24 hours to digest the Bond Plan; it's going to take a lot longer than that, and the result when it gets digested is not going to be pretty.

Mark Carney's picture

OT: anyone have any ideas on how can I get a silver tea set (given by in laws) melted down into coins? much rather try and carry coins around in my canoe then the tea set, hopefully this time ill make it across the lake.

knukles's picture

Solid silver?
I can take care of that for ya'
                -Jon Corzine

Brazillionaire's picture

Sell tea set, buy silver coins with proceeds. While you're at it, sell everything else you don't need, buy silver coins. The only exception to this is "sell X, buy gold coins".

TPTB_r_TBTF's picture

when life gives you a silver tea set ...

then boil some water!

no life's picture

They will probably announce a plan to allow used condoms as eligible collateral.

john39's picture

more like unborn children...

HD's picture

"They will probably announce a plan to allow used condoms as eligible collateral."

 Makes sense. Think of all the injected liquidity...

CPL's picture

I'm offering Hindenburg derivative option chain and Iran-Contra Underwriting.


Swear to christ...nothing shitty could possibly happen.

Overflow-admin's picture

I'd like to exchange yours with some Heisenberg (is it a put or a call?) packaged options but only in dark pools of course.

Cognitive Dissonance's picture


Fixed it for ya.

CrashisOptimistic's picture


SUBORDINATION IS THE KEY.  The ECB has to get past the issue of doing it or not, against German opposition, but even if they did get past the Germans, they have to create wording that DOES NOT SUB-PRIORITIZE PRESENT SPANISH BOND HOLDERS.

If they subordinate present owners of those bonds, those holders will smell Greek PSI coming and flee, undoing the whole process.

If the ECB tries to subordinate its own purchases to bonds already held, then that is placing taxpayer money behind private money and no parliament will allow that.


Cognitive Dissonance's picture

There is only one way out of this maze.....and this ain't it.

surf0766's picture

Does the dog ever catch its' tail ?

DoChenRollingBearing's picture

Just keep it together a few more weeks Euro guys!  Draghi, Merkel and Monti:  just a few weeks...  Until we come back from Italy.  Then do whatever it is you are going to do to ruin a beautiful continent...  Sad really.

knukles's picture

Hi Angie?
Who's this?
Me who
You know who
Oh, yeah, you
Yeah listen
He's got you scared, doesn't he
Who?  You mean Willard?
Nah, not me, listen...
Bullshit, or else you wouldn't be calling me, schvartzer
Listen, Angie, can you all just hold this thing together till after November?
Hold this...

Who's this
You know
No I don't
Oh Jesus, not again
Why'd you reference Jesus?  You people don't believe in him.
Wait, can I ask you not to attack anybody until past November?  As a favor?
Attack this...

I wanna go to St. Petersburg

American34's picture

Dear Mr. Durden,


It would be nice to have either a spot in the forum or somewhere at least on this site where readers questions could be posed in a structured manner that wouldn't be made obsolete in 2 hours by hundreds of comments.

I understand the difficulty as you would like receive hundreds of questions but maybe a small fee could be paid to limit the amount of questions asked.

Either way, I believe many readers here would enjoy the priviledge of being able to ask you and your collegues intelligent questions regarding the future of the economic world we live in.

Ghordius's picture

The question to your answer is "how many times could gold be more worth than the usual portfolio in some years?".

surf0766's picture

Funny as all hell. I was waiting for it.


Dude, try reading the articles.


$16 trillion + $6 trillion = $22 trillion. Debt


46 million on foodstamps.


98% moron population.


Obommunist  ( not  my idea but another dearers) sympathizers all over the country.

50% of the population pays no taxes.

The dollar is crap.

What part of f'd up don't you get?


Now ask your question and one of the more well-informed folks around here will answer your question.


As I was told when I first came on the zh. "This is the fight club"


Peace !


Dr. Engali's picture

WTF were you thinking? You gave him the answer for free. He was willing to pay for it.

surf0766's picture

Well I never had the opportunity to do it to a newbie and I was bored so I figured I would. Come on I was just sharing your wealth !

American34's picture

Watch it buddy! I have been on this forum for a long time. I just would like to see a more serious forum rather than the standurd "BULLISH!" or "GOLD!" that never seems to end and without all the BS that is rhetorically spouted over and over. I would much rather come out of this better off than worse and I am sure there are more ways than buying gold! The world isn't going to end and we will come out the other side at some point. I would like to position myself to be better off then not just where I am now.

But apparently intelligent discussion isn't a primary topic here. Everyone would rather whine piss and moan about hyperinflation and how it sucks rather than what to actually do about it in the real world!

ParkAveFlasher's picture


2) refer to #1

surf0766's picture

Because everything has been talked, chatted and discussed. The only thing left is to watch the shitter flush. Sorry but most know the reset is coming. How it trades no one knows. Black swan this black swan that.

So I buy staples and stay the hell out of the market.


You want to fix the u.s problem. Cut gov't spending 20% every 6 months until we spend what we take in.

Flat tax everyone at every income level. Fair is fair. No deductions.

Eliminate all corporate taxes. We need companies to want to be here and stop chasing them overseas or giving them tax credits to push jobs everseas which both parties do.


This has all been said time and time again.


Grab a beer or scotch. Sit back. Stick to your common sense.







Ghordius's picture

+1, though I find strange that your generation taxes corporations that little compared to the Great Generation and a few before.

Dr. Engali's picture

Corporations are only a conduit to collect taxes on the serfs. If people could grasp that  they would understand the fact the wool is being pulled over their eyes.

Dr. Engali's picture

There are a lot of intelligent people on this site who are more than willing to  engage in serious financial and economic topics. That is one of the great things about the Hedge. Sure you get a lot of silliness but that is just people letting of steam. Plus much of it just has to do with the fact that every day seems like ground hog day, and many of these topics have been discussed into the ground. But silliness aside,you also get a place where you can learn not just from the Tyler's but also from the participants.


Edit..If you want to trully understand why gold you must include FOFOA in your readings.



debtor of last resort's picture

I read it for about a year now. Never asked a question, maybe a funny one or so. Are you just looking or are you also seeing? When you understand things you will wake up every morning with a loud GOLD BITCHEZ!!!

These guys are right, there's nothing to say anymore. And, please don't tell anyone, when i'm flushing the toilet i whisper: fuck you Bernanke....  My wife must not hear that, she already hates me losing our savings in pm's in a boating accident.

American34's picture


Agent P's picture

I can't even digest a corn dog in 24 hours.

Brazillionaire's picture

I am afraid to ask how you know this....

knukles's picture

Mrs. P:  Agent!  WTF are you doing poking your poops with that stick?  Are you fucking sick or something?  Jesus!

Agent P:  Aw honey, just looking for those, uh  you know... the ah.. ah.. ah...   diamonds.  Yeah, the diamonds I swallowed.  Yeah, the diamonds I swallowed that I found under the couch cushions.

Mrs P:  Well thank the Lord for that!  I thought you were playing with your corn-dog poop again.

LongSoupLine's picture



Is it me, or are the propaganda media releases now shitting out faster than I can post threads to them here at ZH?  Un-fucking-real.

surf0766's picture

For the 2% non-morons nothing is believable. But for the 98% morons everything that the news media says is golden.



SheepDog-One's picture

24 hours to digest plan, stand by for explosive sharts.

Overflow-admin's picture

Internetz suggest an appropriate toilet seat XD

And if you're a young Bankia client, you can even use their official towel

Bankia - it's time for some hard shit right now!

Zero Govt's picture

"ECB Bond-Buying Plan-For-A-Plan Will Self-Destruct In 24 Hours"

That's twice the lifespan of most ECB financial plans ..don't throw away the rose tinted shades just yet Mario, not everything you do falls apart by lunchtime


adr's picture

nobody wants to go into labor day weekend broke.  Watch out for the tuesday hangover.

Dr. Engali's picture

It's a good thing we have a long weekend for them to think of some other bullshit to dazzle us with. Hmmmm what rumor hasn't been tossed around lately?......alien invasion?

john39's picture

the war option seems primed and ready to go... together with the fascist police state roll out in all so called democracies, including the USSA.

LouisDega's picture

Does this mean no Jerry Lewis?