Previewing The ECB's 7:45 AM Interest Rate Decision

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Thu, 12/08/2011 - 08:00 | 1957762 Oh regional Indian
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Another crazy Friday meeting, loads of weekend innuendo, either a stellar monday or a shitty, black one. Almost feels like it does not matter anymore. 

And UK Gilts are a safe haven? hmmmmm....... must research the resurgence of the Empire.

ORI

/the-plan/

Thu, 12/08/2011 - 08:03 | 1957771 BandGap
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And the woot of the day is 60 AA or AAA batteries for 5.99 plus shipping. Talk about a mix of news.

 

Thu, 12/08/2011 - 08:41 | 1957840 Ghordius
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re: "UK Gilts are a safe haven" - yes, guaranteed to be repayed, UK never defaulted since the Middle Ages, period. Only problem: you are repayed in future quids. Solution: postpone it, buy the 30y.

 

Thu, 12/08/2011 - 08:01 | 1957764 DavidC
DavidC's picture

What am I missing here? If the ECB cuts rates that's bearish for the Euro, yes? And bearish Euro is bullish Dollar. Bullish Dollar means bearish US stocks, surely?

Am I missing something? Serious question.

DavidC

Thu, 12/08/2011 - 08:04 | 1957773 Oh regional Indian
Oh regional Indian's picture

David, that is such a logical flow of events, ne? By that logic, gold and the dollar are still inversly correlated. Plus, does logical/overwhenling bearish pressure translate to a dive? Hardly ever anymore.

ORI

Thu, 12/08/2011 - 08:17 | 1957795 DavidC
DavidC's picture

ORI,
I take your point but Gold, as well as having the inverse dollar relationship, has also had physical buying pressure, even (latterly) from Central Banks. But the US stock market seems to be just a dollar(or HFT!) play, particularly when we had the ZeroHedge post yesterday about more massive withdrawals from funds.

I was thinking again, last night, about HFTs, following the move after the denied rumour of ECB/IMF funding. If ANYTHING occurs to precipitate a drop, I think we're going to see another 'HFT - STOP' event and the market will plunge. I could be wrong, but it's food for thought.

DavidC

Thu, 12/08/2011 - 08:28 | 1957820 Oh regional Indian
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Entirely likely DavidC. 

Two massively contradictory headlines.....boom!

ORI

Thu, 12/08/2011 - 08:03 | 1957772 Irish66
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BOE rates unchanged

Thu, 12/08/2011 - 08:05 | 1957775 morisu
morisu's picture

And in other news: as concerns rose earlier about Finlad stopping the great new ESM renovation (http://online.wsj.com/article/BT-CO-20111208-704218.html) the decision from Finnish Constitutional Court just came out and new ESM is (surprise?) against constitution. So no votes from Finns for the new ESM structures.

http://yle.fi/uutiset/talous_ja_politiikka/2011/12/perustuslakivaliokunt...

Thu, 12/08/2011 - 08:31 | 1957822 Iriestx
Iriestx's picture

HAHAH!  Cutting interst rates.  Yeah, because that's what the problem is.  This is the equivalent of putting some air pressure in my tires when the engine is on fire and hoping the car will run.

Thu, 12/08/2011 - 08:40 | 1957836 silver500
silver500's picture

No, this is like throwing gasoline at that car...

The interest rate is not irrelevant; the artificially low rates are the fundamental cause of the problems in the financial system and economy.

Thu, 12/08/2011 - 08:37 | 1957835 youngman
youngman's picture

What would Trichet do?    The dropping of the rate is meaningless....its just to equalize between the US and Europe....for the new currency???????  Tell me what the Greek Restaurant owner is doing to change his life....nothing..he is not going to pay more taxes...or fees...we are turning the Western world into a black market....a big black market

Thu, 12/08/2011 - 08:49 | 1957855 zilverreiger
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streams:

Webcast of the press conference 8 December 2011

Press conference following the meeting of the Governing Council of the European Central Bank on 8 December 2011 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET:

  • Introductory statement by Mario Draghi, President of the ECB.
  • Question and answer session. Registered journalists pose questions to Mario Draghi, President of the ECB, and to Vítor Constâncio, Vice-President of the ECB

http://www.ecb.int/press/tvservices/webcast/html/webcast_111208.en.html

Thu, 12/08/2011 - 10:07 | 1958110 NEOSERF
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The funny thing about all these banks going to the Central bank windows to sure up their capital accounts is that the implicit pledge and promise is that at some point growth will return to some 4-6% level which will allow them to actually make payments...reality is that we are now in a -2% to 2% world without free future cash flow spend creating jobs and projects that had a negative ROI...

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