This page has been archived and commenting is disabled.

Schauble Just Says Nein Again: German FinMin Denies Rumors Of ECB Bond Buying

Tyler Durden's picture


When day after day, for three days in a row last week, the ECB spread rumors that it would commence buying Spanish debt in what was in retrospect nothing but a massive bluff (just as we suggested yesterday), what passes for a market postulated that since there was no official German denial, and with Merkel on vacation that would mean a statement from her finance minister sidekick Wolfgang Schauble, that Germany was ok with the reactivation of Spanish bond buying and as a result ramped risk by over 4% in 3 days. All of that is about to wiped out as Schauble has finally spoken. Quote Spiegel: "For days, it is rumored that the ECB will buy Spanish government bonds in a big way. Now Finance Minister Wolfgang Schaeuble has rejected such reports - there was "no truth". And scene. Luckily all the momo chasers who bought stocks last week on hopes their prayer-based strategy will finally play out, will be able to sell ahead of all those other momo chasers who bought stocks last week on hope their prayer-based strategy will finally play out. Or maybe not.

From Spiegel:

For days, it is speculated that the European Central Bank (ECB) is planning, together with the bailout fund EFSF Spanish government bond buy - so come back to Spain to cheaper capital. The "Sueddeutsche Zeitung" According to the euro countries willing to support this approach . Federal Finance Minister Wolfgang Schäuble (CDU) has now dismissed the reports in an interview with the newspaper "Welt am Sonntag".


"No, at this speculation is not true," Schäuble said the newspaper. The Finance Minister said it was already a sufficiently large aid package for Spain have been laced.


The 100-billion-euro package to recapitalize Spanish banks also close an emergency aid of 30 billion €. "The short-term financial requirements of Spain is not so great", said Schäuble, "the painfully high interest rates - but the world will not, if you have to pay for some bond auctions a few percent more."

Why will Germany, which Schauble says himself is in a very difficult position, and has already been very helpful to Spain, not provide more funding? Simple - unlike all other broke globalist neo-socialists, he believes that the market is actually right in punishing profligate spenders, and having bonds trade above 7% is not the end of the world. Of course, he is absolutely right.

The interest for Spanish government bonds in recent days had passed, the legislation as critical threshold of seven percent. Schäuble said, however, convinced that the Spanish reform efforts, which he praised likely to be soon rewarded. The finance ministers will meet on Monday with his U.S. counterpart, Timothy Geithner . Observers expect that will also be in this conversation on the holiday island of Sylt in the center of the European financial crisis.

And in case one rejection is not enough, here is another, courtesy of Handelsblatt:

Federal Finance Minister Wolfgang Schaeuble has rejected speculation about impending purchases of government bonds by Spanish EFSF and ECB. Spain itself, meanwhile, calls for more solidarity from Germany.


When asked whether there would soon be a motion to allow the euro rescue could buy Spanish government bonds, Schaeuble said the "Welt am Sonntag", "No, at this speculation is not true."


Schäuble does not believe that the high risk premiums on corporate bonds Spain overwhelm. "The short-term financial requirements of Spain is not so big," he said. "The high interest rates are painful, and they create a lot of anxiety -. But the world does not go under if you have to pay for some bond auctions a few percent more," You have "tied aid package big enough" for Spain. The country receives for the recapitalization of its banks up to 100 billion €. "And we have them provided 30 billion euros in rescue EFSF as a possible emergency," said the Minister

Finally, no denial is complete unless it is in triplicate (biblical references notwithstanding), here is Dow Jones with the news that nobody could have possibly predicted:

German Finance Minster Wolfgang Schaeuble denied plans for a new aid program for Spain, according to newspaper Welt am Sonntag, after the media reported European Union leaders aim for Spanish government bond purchases by the European rescue fund and the European Central Bank.


Speculations that Spain might apply for additional aid from the rescue fund are unfounded, Mr. Schaeuble said, according to pre-released excerpts of an interview to be published Sunday in Germany's Welt am Sonntag. Spain's "high interest rates are painful and cause a lot of concern, but it isn't the end of the world when a few percent more have to be payed at some auctions," Schaeuble said according to the newspaper, adding "Spain's financing needs aren't that huge in the short term."


Schaeuble's remarks are a denial of a report in French daily Le Monde that the ECB and European governments are putting together a plan that would see the bailout fund and the central bank buying Spanish and Italian debt. A surge in Spanish government debt yields sparked fears the country might lose access to financing.


Schaeuble said the Spanish government has made all necessary decisions and is implementing them, according to Welt am Sonntag. "Financial markets haven't yet honored the reforms, but they will do so," he is quoted as saying. Spain's reform  program will have good effects, also on financial markets, he said

So what is Spain's strategy: nothing but more heart-string tugging and some World War II revisionist history:

The Spanish Minister for Europe, Inigo Mendez de Vigo has claimed in an interview from the federal government more commitment and solidarity in crisis management. After the Second World War, Germany had been helped in a very much more difficult situation, the minister said the "Bild" newspaper. Many countries have abandoned in favor of the Federal Republic of money. "That should not forget Germany".

In other words, help a brother out. Only problem is that when the Marshall Plan was instituted, there was a whole continent of incremental debt capacity still untapped, courtesy of debt repudiation. This time around, there is no such thing, and certainly not in the US where debt/GDP is now 103%. So unless somehow Africa is to be involved in the second Marshall Plan of Europe, we urge Spain to rethink its strategy.

Just as we urge all those who continue to buy stocks on hope and prayer to perhaps reevaluate if they are in the right business.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 07/28/2012 - 09:34 | 2658817 CuriousPasserby
CuriousPasserby's picture

At this point the Spanish probably wish they had been invaded by Germany in the war so they could use that guilt trip like Greece.

Sat, 07/28/2012 - 10:06 | 2658843 GOSPLAN HERO
GOSPLAN HERO's picture

During WWII, the Spanish Army's "Blue Division" fought the Red Army on the Eastern Front. Through rotation, as many as 45,000 Spanish soldiers served on the Eastern Front. They were awarded both Spanish and German military awards.

Sat, 07/28/2012 - 10:43 | 2658904 flacon
flacon's picture

I'm curious to see what happens to "the white metal" next week. We are at the apex of the wedge and it is trying to break to the upside. 

Sat, 07/28/2012 - 13:01 | 2659071 Randall Cabot
Randall Cabot's picture

Did ZH miss something? "The leaders of France and Germany pledged to boost Eurozone Friday..."

Sat, 07/28/2012 - 13:47 | 2659116 Jake88
Jake88's picture

They didn't really cover all relevant facts did they. Comments by Merkel and Hollande yesterday while seeming to express openess to all options were vague and open only to interpretation. Bulls are eager to read meaning into these statements that isn't really there. As far as Hilsenrath's statements are concerned they offer nothing we didn't know already yet the bulls are reading into them what they want to believe. The biggest fools in all this are the bulls (at least the ones still long) IMHO

Sat, 07/28/2012 - 17:44 | 2659462 Vaiman
Vaiman's picture

Very Interestink indeed.  Funny there have been no front page headlines of this on Bloomberg. 

Sat, 07/28/2012 - 10:02 | 2658850 vmromk
vmromk's picture

Mario Draghi......SUCK MY COCK !!!!!

Sat, 07/28/2012 - 10:19 | 2658867 gmrpeabody
gmrpeabody's picture

So, with that..., can we assume you're one of the buyers?

Sat, 07/28/2012 - 11:25 | 2658962 Reptil
Reptil's picture

ehm yeah, Franco.


Sat, 07/28/2012 - 12:03 | 2659001 Joe A
Joe A's picture

Heard of a place called Guernica?

Sun, 07/29/2012 - 01:47 | 2659924 Buck Johnson
Buck Johnson's picture

Europe is screwed, and they are doing everything they can to save this corpse.

Sat, 07/28/2012 - 09:36 | 2658818 d edwards
d edwards's picture

Only suckers pay serious attention to these "the euro is saved" statements. Every week or ten days theres a statement, the muppets get all excited and nothing changes.

The EU is just dying a s-l-o-w death.

Sat, 07/28/2012 - 17:25 | 2659030 silencemachine
silencemachine's picture

... that will never arrive. Agony maybe, and many things must change but euro is irreversible, none want his death. 

Sat, 07/28/2012 - 12:34 | 2659037 TPTB_r_TBTF
TPTB_r_TBTF's picture

the Euro is doing ok; the Sovereignty of EU-nations not so much...

Sat, 07/28/2012 - 13:20 | 2659092 Blammo
Blammo's picture

Reminds me of a car I used to have. Every couple days it required a new hose clamp or something.

Sat, 07/28/2012 - 09:37 | 2658820 marz929
marz929's picture


Sat, 07/28/2012 - 09:41 | 2658824 Squid Vicious
Squid Vicious's picture

In the Hampsteins, with the rest of the pig men, of course...

Sat, 07/28/2012 - 10:18 | 2658870 GOLDTEETHSILVER...

Still on the lam...

Sat, 07/28/2012 - 13:20 | 2659093 Peter Pan
Peter Pan's picture


He cannot remember.

Sat, 07/28/2012 - 13:24 | 2659095 derryb
derryb's picture

on a south pacific beach with Kenneth Lay.

Sat, 07/28/2012 - 09:37 | 2658821 apberusdisvet
apberusdisvet's picture

Oh well; at least the markets rose for the weekend.  Karma for Monday's opening of down 300.

It's a bitch when the PPT has to come in on a Sunday to program the algos.

Sat, 07/28/2012 - 10:04 | 2658854 GMadScientist
GMadScientist's picture

Try coming in on Saturday to program the PPT!

Sat, 07/28/2012 - 14:39 | 2659214 BudFox2012
BudFox2012's picture

So you think the markets are going to retrace their gains from this bs next week? Doubtful. Who needs qe when you can pump the market to infinity with bs press conferences, misleading headlines, and computer algo trading.

I wonder if there is anything that can cause the Dow to crash anymore? We'll be living in a mad max wasteland and computers will be trading the Dow up to 30000 on news that master blaster runs barter town...

Sat, 07/28/2012 - 16:29 | 2659390 you enjoy myself
you enjoy myself's picture

yep.  at what point over the last 3 years have markets ever retraced any bogus ramp?  maybe its happened 2 or 3 times, despite near weekly rumor ramps?  the market ratchets up a notch and then uses that level as a base.  this denial just means we'll be flat on monday.

Sat, 07/28/2012 - 09:43 | 2658827 Racer
Racer's picture

They allowed the 'market' to go up for a few days before they deny to get the most out of it...

Sat, 07/28/2012 - 09:50 | 2658834 ArkansasAngie
ArkansasAngie's picture

On Saturday.

But ... how are the Algos?  Why the banksters of course

salting a mine is illegal isn't it?

Sat, 07/28/2012 - 10:41 | 2658902 Haager
Haager's picture

And anyone knows who is responsible for the crank up if the markets won't tank.

Sat, 07/28/2012 - 15:50 | 2659326 scatterbrains
scatterbrains's picture

exactly and I'm sure the PPT was building /ES short positions all they way up so that they can cover and buy a bottom somewhere between 1000 and 1100 /es.. for a while anyway. I wouldnt be surprized if the jeethner is massively short just to arrest a potential crash if the euro shit's the bed.


Sat, 07/28/2012 - 09:50 | 2658835 Hetty Green
Hetty Green's picture

"The finance ministers will meet on Monday with his U.S. counterpart, Timothy Geithner ."

Timmay to the rescue!

Sat, 07/28/2012 - 09:56 | 2658840 ArkansasAngie
ArkansasAngie's picture

Lord!  Save us from Timmy.

I'd prefer he was in jail to out enjoying his day by ruining ours


Sat, 07/28/2012 - 12:37 | 2659042 slewie the pi-rat
slewie the pi-rat's picture

i thought that was the most important newsy here, myself, Hetty_G

timmah, BiCheZ!

the gathering of the mofo banksters;  the wizards of the rocky/rothy Oz&FiatFest

no wonder marioECB  amazed even robo_T   yesterday, glasshoppers!  the "string quartet" of cBanks cracked that EUR0,000 whip up & down like centralPlanningPapa's got a brand new bag - YouTube

Y/C is doing 2-a-daze w/ his chi-rhopractor...

Sat, 07/28/2012 - 09:51 | 2658836 mark7
mark7's picture

Spanish banks only loaned up to 60 percent of estimated value of a holiday house or second house which is almost always lower than the actual market price. The buyer has to come up to the table with usually more than half of the money. So Spanish real estate bubble is nothing like in Florida where every muppet got a 100+ LTV loan simply by walking into a bank.

There were also no reselling of loans without banks witholding some of the original package (required by law there).

Sat, 07/28/2012 - 10:03 | 2658851 Bazza McKenzie
Bazza McKenzie's picture

How much of the Spanish real estate bubble is in the hands of developers, who operate on commercial loans that certaintly don't require 60% down?  I suspect it is the same as Ireland, a large proportion of the unsellable property was in the hands of developers.

Sat, 07/28/2012 - 10:12 | 2658861 mark7
mark7's picture

"Spanish lenders hold 308 billion euros of real estate loans, about half of which are “troubled,” according to the Bank of Spain."

So these idiotic 400-500 billion euro bailout figures are just bullshit.

Sat, 07/28/2012 - 10:16 | 2658866 GMadScientist
GMadScientist's picture

You think that (soon-to-be-)default rate is static? LOL

Are you so naive as to think they aren't multiply levered?

Are you intentionally neglecting to mention the indebted sovereign itself or just kinda dumb?

Sat, 07/28/2012 - 11:00 | 2658925 Tirpitz
Tirpitz's picture

Mark, spot on. But don't let's forget the French & German (and other) banks which loaned like drunken sailors into the Spanish bubble. Like in Greece and like in Eire, these shaking corporations need to be saved, via Spanish bailout.

Spain's economic numbers were the best of the entire EU for years, so they'd do well to repudiate the fake debt and start over. Chilly thoughts for Frankfurt, Paris and London.

Sat, 07/28/2012 - 10:12 | 2658862 GMadScientist
GMadScientist's picture

Too right, Bazza.

And commercial property in Spain as well...

“We thought in our wildest dreams that maybe it might make 100-million euros, which was a crazy price,” he said. “When the bids were opened there was a bid of 171-million euros and the developer was backed up by one of our main banks. That was just a flavuor of the madness.” The site is currently being used by a local luxury car dealer, MSL Ballsbridge Motors, to store vehicles, mainly Daimler AG’s Mercedes-Benz models. The adjustment is going to take much longer in Spain On the northern outskirts of Madrid, near Barajas airport and the Real Madrid soccer team’s training ground, is Valdebebas, a development project under construction covering more than 10.6 million square meters of space. About 5,400 of the planned 12,500 homes have been built and another 2,100 are under construction, according to a spokesman for the project who declined to be identified by name, citing company policy. The development, which belongs to private land owners who pooled their property, is backed by banks including Banco Bilbao Vizcaya Argentaria SA and Aareal Bank AG. There are bus tours on Saturday for potential buyers, and an open house of the model homes every Sunday."

Sat, 07/28/2012 - 10:08 | 2658859 GMadScientist
GMadScientist's picture

It doesn't even matter if the houses get bought, if they overbuilt, they'll be in a slump with or without buyers and the chances of even getting the less-hard landing are slim to none with their current employment situation. They have an entire generation's worth of excess housing and an entire generation that can't afford it.

Sat, 07/28/2012 - 10:18 | 2658869 mark7
mark7's picture

You are overestimating badly the size of the problem. From the link I posted:

"“Spain has 1 million new homes that won’t be completely absorbed by the market until the middle of 2017,” Fernando Acuna Ruiz, managing partner of Taurus Iberica, said in an interview in Madrid. “Prices will fall a further 15 to 20 percent in the next two to three years.”

About 13 percent of Spain’s 25.8 million homes are vacant, according to LDC Group, an Alicante-based specialist in real- estate management. The hardest-hit areas are Madrid, with 337,212 empty properties, and Barcelona with 338,645, LDC said in a report published yesterday."

US has vacancy rate of around 10 percent (rental + homeowner rate).

Sat, 07/28/2012 - 10:23 | 2658876 GMadScientist
GMadScientist's picture


Unemployment: 24.6 percent and climbing.GDP -?% and dropping. Yields 7.?% and rising (do not play Nazi with Herr Schauble).

I don't know what they gave you in Ibiza, but it fried your neural net somewhat badly.

Sat, 07/28/2012 - 10:27 | 2658881 mark7
mark7's picture

You obviously know nothing about Spain. It was also 24 percent back in 1994, so what else is new. Even during good times the unemployment rate is usually 7-10 percent in Spain. Also I'd bet many still work but collect unemployment benefits at the same time.

Sat, 07/28/2012 - 12:41 | 2659044 Calmyourself
Calmyourself's picture

So whats the problem Mark, everything should be fine what the heck is Spain and her politicians bitching about, fix it..  Obviously there  are no problems in Spain, how about Italia?

Sat, 07/28/2012 - 13:10 | 2659079 FMR Bankster
FMR Bankster's picture

Spain has no problems in the same way the rest of southern europe has no problems. Say your one of the 24.6% unemployed, safely collecting your unemployment benefits while working for cash on the side. You live at home with your parents, who run a small shop and also pay no taxes. You party all night and put in a few hours for cash during the day. Your goverment, both the federal as well as state units borrow a bucket full of Euro's from others never to be paid back. Worst case, it all falls apart and you go back to living like you did in the mid 90's before the Germans were stupid enough to give you all this free money. Welcome to southern europe, sounds like the Germans have a problem and they have started to figure out what it is.

Sat, 07/28/2012 - 14:13 | 2659156 mark7
mark7's picture

Well, what is wrong with that?! :) Good life, no work stress, multiple sex partners and wonderful parties. I feel sad towards Americans who work like busy, obsessed demons until they are 65, collecting on the way everything from diabetes to hypertension. Then they go to "see Europe" by going to Disneyland in Paris and maybe even Normandy beaches when barely able to walk 10 yards without a crutch. Such a waste.

Sat, 07/28/2012 - 09:55 | 2658839 collon88
collon88's picture

Confucius say, "He who have hopium hard-on get splashed with cold water".

Sat, 07/28/2012 - 12:43 | 2659046 TPTB_r_TBTF
TPTB_r_TBTF's picture

they seem to have advanced water-boarding, so ya donT have to lie down any more to get it.

Sat, 07/28/2012 - 10:06 | 2658841 John Law Lives
John Law Lives's picture

How decidedly convenient that this rebuttal comes after the drug lords juiced the market with crack pellets during the week...

100% FUBAR.

Sat, 07/28/2012 - 10:46 | 2658906 Tirpitz
Tirpitz's picture

Let's see how many votes Schauble can roll in at the next ECB board meating. Talk is cheap and the old fool felt he had to be in the news once his chieftain left for the summer camp.

Sat, 07/28/2012 - 10:01 | 2658846 lizzy36
lizzy36's picture

Every good heroin addict chases his first high, and prays it isn't their last high.

No different here.

We all know how it ends the only question that remains is when.

Sat, 07/28/2012 - 15:42 | 2659312 earleflorida
earleflorida's picture

america brings heroin to afghanistan and hopium to the world,...

enjoy :-))

Sat, 07/28/2012 - 10:02 | 2658847 Hype Alert
Hype Alert's picture

I wonder if the people that bought in at the top on Friday did so on margin?


Not that it matters, if the market drops a half percent, they'll just queue Hilsenrath.  It's his volley anyway.

Sat, 07/28/2012 - 10:02 | 2658849 GMadScientist
GMadScientist's picture

What do I care what RobotTrader eats pavement as long as I can get some VIX pop for a pleasant trip to the coin store?

Sat, 07/28/2012 - 10:21 | 2658874 indianajohns04
indianajohns04's picture

Let's hope....I got angry yesterday and against all of my principles bought UVXY after hours. Not the best way to trade.

Sat, 07/28/2012 - 13:04 | 2659073 GMadScientist
GMadScientist's picture

Vaya con dios!

Sat, 07/28/2012 - 10:04 | 2658853 tbone654
tbone654's picture

don't worry, I shorted the close...  Market will still open up Monday...

Sat, 07/28/2012 - 10:07 | 2658858 Hype Alert
Hype Alert's picture

I give it until Wednesday. 

Sat, 07/28/2012 - 10:20 | 2658872 fattail
fattail's picture


Sat, 07/28/2012 - 10:35 | 2658894 The trend is yo...
The trend is your friend's picture

my trend analysis formula said to go long last week but my brain kept shorting...i feel your pain....i wish i had the decipline to turn off the brain and just follow the trends blindly,  i'd we wealthier and have more hair

Sat, 07/28/2012 - 16:36 | 2659399 tbone654
tbone654's picture

I got a BIG buy signal monday... bot call options at $9.20...  Sold them wednesday at $1.95 thinking I was saving some money by not letting them expire worthless...  mid-day friday they were $35.00...

So I was right about the signal... choked on the execution... now I'm short fridays close, so expect another big move up...  And it should be a good sell signal, but the way this market trades rumors, it's so unreal...

sheesh!  But you MUST keep trading the signals and take the head and heart out of it...  IMO...

Sat, 07/28/2012 - 10:04 | 2658855 Peter K
Peter K's picture

"Just as we urge all those who continue to buy stocks on hope and prayer to perhaps reevaluate if they are in the right business."

No truer words have ever been said :)

Sat, 07/28/2012 - 10:12 | 2658863 AccreditedEYE
AccreditedEYE's picture

LMAO!!!! Fantastic. However, I hope that Schauble understands that if in fact Germany decides to go forward with ANY further financings, all that lovely cheap money his country has gotten used to will be going out the window. Yup, I don't care how cooperative Merkel wants to be with the periphery, they wanna play hero they will suffer the consequences. Watch Bund yields to tell the REAL tale.

Sat, 07/28/2012 - 10:18 | 2658868 t_kAyk
t_kAyk's picture

O/T but good news for the time being...

U.N. states fail to reach global arms trade treaty

UNITED NATIONS (AP) — A U.N. treaty to regulate the multibillion-dollar global arms trade will have to wait after member states failed to an reach agreement, and some diplomats and supporters blamed the United States for the unraveling of the monthlong negotiating conference.

Hopes had been raised that agreement could be reached on a revised treaty text that closed some major loopholes by Friday's deadline for action. But the U.S. announced Friday morning that it needed more time to consider the proposed treaty — and Russia and China then also asked for more time.

Sat, 07/28/2012 - 11:33 | 2658974 mr. mirbach
mr. mirbach's picture

"But this leaves the door open for further talks and a draft arms-trade treaty could be brought to the 193-nation U.N. General Assembly and adopted with a two-thirds majority vote. Diplomats said there could be a vote by the end of the year."


This isn't over yet. Stay Frosty!

Sat, 07/28/2012 - 10:19 | 2658871 ThunderingTurd
ThunderingTurd's picture

All that matters here is that GS was able to unload their long Spanish/italian debt at small losses.  They were wrong about advocating going long this debt, realized it, and needed help exiting the position.  it is so frustratingly obvious...#doingGodswork

Sat, 07/28/2012 - 10:29 | 2658883 Fail2Deliver
Fail2Deliver's picture

If I spread rumors to intentionally manipulate the price of a stock (or bond), I would be thrown in jail. What is the minimum net worth an individual needs to obtain where the SEC or DOJ will not investigate? There is obviously a number.

Sat, 07/28/2012 - 10:50 | 2658914 Tirpitz
Tirpitz's picture

In that tribe they don't talk about numbers anymore. The right (second) passport is of great help, though.

Sat, 07/28/2012 - 12:52 | 2659055 TPTB_r_TBTF
TPTB_r_TBTF's picture

club members only.

The correct bloodline helps too.

Sat, 07/28/2012 - 10:46 | 2658907 Haager
Haager's picture

I really would prefer a focus on Italy. There must be a reason that the MIBTEL go up and down nearly synchronous with the IBEX.

And did anyone notice that SMI and FTSE remain low compared to te rest of Europe and the US?

Sat, 07/28/2012 - 10:52 | 2658920 Tirpitz
Tirpitz's picture

SMH looks stronger than SMI.

Sat, 07/28/2012 - 10:57 | 2658924 pcrs
pcrs's picture

The german rulers will resist for a while longer, but they will cave and the market participants know it. Just a little more grease have to be applied to those who oppose it. In the end the german rulers will sell out their tax serfs for their own profit. It's not that the german population would fight or that the german army will not follow orders. The dutch, german an finnish tax slaves will be harvested, they are ripe, confused and defenseless.

Sat, 07/28/2012 - 11:05 | 2658933 Tirpitz
Tirpitz's picture

With more than 80% of global manufacturing output in outright contraction, I would expect the ECB to flood the market either this weekend or come Thursday with liquidity. The markets were warned, shorts could get out. The Ferkel will freak about 'vollendete Tatsachen' from its vacation trailer and have no say in this all. Draghi, being Goldman kin, knows a chance when he sees one.

Sat, 07/28/2012 - 14:16 | 2659164 Jake88
Jake88's picture

you really are on crack

Sat, 07/28/2012 - 11:05 | 2658935 milanitaly
milanitaly's picture

This is the last call for euro. Merkel now knows that italy and spain are ready to go out if german will go on saying nein.

The euro future is only in the germany hands. They have to decide what they want and get their responsability.

If you didn't hear Merkel's nein yesterday there is a reason that Tyler should explain you.

Sat, 07/28/2012 - 11:24 | 2658964 ruffian
ruffian's picture

Not true. It is all in the FED's hands. The FED can print to infintum, the ECB can not !! Bernanke will bail out every town, city, state, province, countryon the panet and if Uranus needs bailing out he'll do that too. Germany will just sit and watch the show................. 

Sat, 07/28/2012 - 12:57 | 2659064 TPTB_r_TBTF
TPTB_r_TBTF's picture

..., the ECB can not yet!!


fixed it for ya.

Disclosure: that neg ainT from me. +1 for Uranus, lol.

Sat, 07/28/2012 - 14:21 | 2659175 Jake88
Jake88's picture

This ill conceived Euro "experiment" has failed big time. End it. WTF are they going to do bail out Greece Ireland Spain Portugal and Italy every year on into forever. nein nein nein!

Sat, 07/28/2012 - 11:23 | 2658961 Venerability
Venerability's picture

You posted that too soon, Tyler.

Schaeuble, Draghi, and Geithner are now set to meet on Monday at a German island resort.

There are rumors the sea around the island will be seeded with crocodiles or possibly dragons.

The leaders will not be permitted to leave, until they are prepared to announce some kind of Shock and Awe strong enough to Save the World.

(The above was only partially tongue in cheek. I believe they WILL announce something significant. Which is why every over-leveraged Euro-Short and Gold Short around is protesting loudly this weekend.)


Sat, 07/28/2012 - 11:32 | 2658971 SheepDog-One
SheepDog-One's picture

Announce 'something significant' like what, moar 'free moneez'? Big deal. 

Sat, 07/28/2012 - 13:00 | 2659069 TPTB_r_TBTF
TPTB_r_TBTF's picture

it's a bigz enoughz deal to keep The Beast on life support.

Sat, 07/28/2012 - 14:01 | 2659133 Jake88
Jake88's picture

Life support? I guess. One really should not underestimate the stupidity of the market.

Sat, 07/28/2012 - 14:05 | 2659141 TPTB_r_TBTF
TPTB_r_TBTF's picture

What market?

Sat, 07/28/2012 - 13:30 | 2659102 miker
miker's picture

Important correction:  Geithner to meet with Schaeble on island first and then later in day with Draghi on mainland Germany.   Geithner is going to "persuade" Schaeble that easing has to happen.  If Schaeble doesn't go along, he's going to tell him it will happen anyway.  Then off to Draghi with input on how to deliver. 

Sat, 07/28/2012 - 16:36 | 2659401 Itch
Itch's picture

Correctamundo. Germany will be playing along whether they like it or not. They kicked and screamed for an independent ECB, well they have it now. And now the majority of them are doves; Draghi,  Constancio, Coeure and Preet . The only german left is Asmusse as Weber and Stark left in hissy fits. Of the other “non-permanent” central wankers, 6 come from crisis countries and are obviously doves, and the other 9 come from non-crisis countries. Of the “non-crisis” countries; Austria, Belgium, Estonia, Finland, France, Germany, Malta, Netherlands and Slovakia, the balance has also tipped with Austria coming out in favour of a banking license. So the comments Draghi made in London may actually be backed up by his own genuine insights of how the DEMOCRATIC landscape of the ECB is now forming. I find it hard to believe that he would bullshit on such an extreme level, it makes no sense…does he too fear that Spain will go bust overnight with yields over 7%, hence he tells a major fucking bare-faced LIE! to temporarily stop armageddon? Nah. Also, he didn’t say that there was going to be immediate relief for the markets…the market’s just went ahead and assumed that, so they are tying themselves up in knots. But its coming…

If the Germans don’t like whats about to go down, all they can simply do is leave…and with doing that they face 1) the responsibility of going down in history as the wreckers of the euro(again), in a full-blown pandemonium so intense it will demonize them for the next century.  2) the obliteration of they’re own economy at the hands of globalisation, i.e. Merc’s and BMW’s will be made in China and their manufacturing export miracle will evaporate infront of their eyes, just like everywhere else in the west not tied to a currency corpse. People thought the Germans had Europe by the balls, but the fact is they have each other by the balls, the imbalances need to be addressed one way or another and the ECB is the only conduit available, so it‘s do or die. As it was in the beginning, so it shall be in the end. And when the ECB opens the floodgates, shorts will be kicked so hard in the balls they will be coughing up blood for a year.

Sat, 07/28/2012 - 11:38 | 2658979 Snakeeyes
Snakeeyes's picture

Germany may come around again, for in spirit only. The yields on The Med and Portugal are simply TOO HIGH to bring down to reasonable levels.

And like the US, low rates encourages MORE spending and borrowing. Its is a suicidal deceleration.

And check out Germany's entitlement problem sometime. They have their own problems.

Sat, 07/28/2012 - 11:38 | 2658981 RobotTrader
RobotTrader's picture

With the newly discovered "bag of tricks" found by Draghi and Bernanke:


- Jawboning

- Gum-Flapping

- Pie-Holing

- Meatballing the Greyhounds with "words"


I expect that the FOMC weighted SPY is going to accelerate even faster.

Central Banking was just made a lot easier this past week.

Any negative "rumors" out of Germany will be countered in 4 trading days by a sudden "statement" that sends the bears reeling and will drive the market to higher highs with higher lows underneath.

Sat, 07/28/2012 - 12:04 | 2659002 SheepDog-One
SheepDog-One's picture

Dont forget your Saturday nite 'Boner Jams' at the Blue Swallow Bar.

Sat, 07/28/2012 - 12:09 | 2659004 Hulk
Hulk's picture

And all the while the jawboning puts are in place, the debt keeps piling up. Everywhere and exponentially.

But thats meaningless, right ???

Sat, 07/28/2012 - 13:28 | 2659100 TPTB_r_TBTF
TPTB_r_TBTF's picture

The degree of meaning to any pile of debt is directly related to the probability of that debt being repudiated [someday].

Sat, 07/28/2012 - 13:02 | 2659072 GMadScientist
GMadScientist's picture

Look not upon the earnings, tidings of the future gap-fill to come.

Sat, 07/28/2012 - 12:03 | 2659000 loveyajimbo
loveyajimbo's picture

The Draghi-Queen spreading lies again... where did this diseased louse work before?  Ah!! never mind, it is all explained.

Sat, 07/28/2012 - 12:15 | 2659010 Joe A
Joe A's picture

And what exactly did Spain contribute to the Marshall plan then? Partido Popular comes from Franco times so this PP minister might as well not make any insinuations regarding WWII.

Sat, 07/28/2012 - 12:42 | 2659045 ZeroAvatar
ZeroAvatar's picture

Gibs me moar!

Sat, 07/28/2012 - 22:10 | 2659210 TomGa
TomGa's picture




"When it's serious, you have to  lie."
-Jean-Claude Juncker


"When it's serious, you have to bluff."
-Mario Draghi



But wait, there's more Mario!


"The euro is “irreversible” and the beleaguered currency union is not in danger of collapsing."

-- Mario Draghi


"Never believe anything in politics until it has been officially denied." 
-- Otto von Bismark


"If it's been officially denied, then it’s probably true"

-- Pilger's law: 


Sun, 07/29/2012 - 10:20 | 2660133 Peterey
Peterey's picture

Have you also had the impression that this week rant by mr Draghi (Enter the Draghi, ... the first part of the video on mr Draghi is fun), was a bit over-done and emotional and resembled the rant by former Greek finance minister Giorgos Papakonstantinou warning short sellers that they will be crushed? When I saw mr. Draghi, I thought that, if Central Bank policy communication becomes open reprimand, this might signal a weakness and not a strength on their part. Let me know what you think...

Week-end review (23-27 July, 2012)
Do NOT follow this link or you will be banned from the site!