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Stocks, Euro Surge On Another Central Bank Intervention Announcement: ECB Ready To Buy Italian, Spanish Bonds
More central bank intervention headlines, and the euro and stocks, which earlier were plunging without a floor, surge:
- ECB ready to buy Italian and Spanish bonds if Berlusconi commits to bring forward specific reforms according to sources
- ECB expects Italy to fast-track welfare reform, fiscal rule for bond purchases according to sources close to talks
- EU leaders applying intensive pressure on Berlusconi to make an announcement according to sources
Said otherwse, open the QE floodgates. Globally. Central banks now control it all. Net result, a 100 pip surge in the EURUSD, and a halt to the market plunge. For at least a few more minutes...
Good luck to anyone trading this lunacy.
And from Reuters:
The euro jumped against the dollar on Friday, hitting session highs, after sources said the European Central Bank said it is ready to buy Italian bonds if Italy commits to accelerate economic reforms to bring down the country's debt.
On Thursday, traders were disappointed that the ECB were buying Portuguese and Irish bonds instead of Italian and Spanish debt. Investors are currently focused on Italy and Spain, as they feared these two countries would follow Greece's footsteps in seeking a bailout.
The euro rose as high as $1.42470 <EUR=EBS> and was last at $1.42137, up 0.8 percent.
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Ball's back in your court, Fed.
yep. expect the overhand kill spike in return.
The Euro plunging without a floor?
Tyler, what chart are you looking at? What time frame would that be?
Time to breathe deep and relax a bit.
http://www.msnbc.msn.com/id/14122841/ns/health-heart_health/t/breathe-de...
Anyone who gave me a negative tick have the courage to respond as to what chart the man was referring too? Because if you go beyond the 1 minute it's extremely hard to make the case for "plunging" (and that means that you need courage to respond, or you need to be a fool, or both).
But to hide behind an anonymous negative tick without saying anything simply leaves you in the coward category.
Damn, and I thought my VIX call lottery tickets were going to pay off.
HAHA good one
BUT the question is, WHO wants to "invest" in a fake stock market run entirely by a notion of if more QE fake fucking monopoly money is injected or not? THAT is not investing and THAT is why the end I promise is so near we can all taste it. Those of us who have 20-30+ years in finance know what is coming...
Soooooo happy I am out of stocks and into tangible assets!!!!!!
Who here has actually been in Italy for any length of time recently? [working not tourist-ing] I'd like to compare experiences with those who aren't armchair asshats for a change..
The rest of you must whistle when you walk - talking out of your asses as much as you do.
I lived in Northern Italy for six months as grad student. Perfect country to live if you have money and/or as a tourist. Everyone is friendly and nice, but everytime you try to do business they try to screw you over and find it normal to do it.
I have several italian friends, the sucessful ones left Italy to work in other EU countries like Germany, France, UK or they work for multinationals.
Serbice is crap there, can't find a restaurant open between 14:00 and 18:00, supermarkets and stores close at evening and weekends, which was plain stupid since it was a tourist town.
They all act like they are self-entitled and deserve the easy life without working hard, etc. Nepotism is legal and official, the postman's job passes from father to son (yes it's true). They're very racist as well, I'm caucasian so never had any trouble, but when I hanged out with my indian/pakistani/black friends/colleagues I could feel the racism overflowing.
I think with this crisis they will learn to treat foreigners much nicer cause they will depend on their goodwill to spend their money there and won't be able to live on goverment's paychecks...or all Italy will become like Naples and they're screwed
Once at the carbineri (police) we had to get some papers that the university requested (residency status) and they treated my indian colleague like garbage, only after I complained and gesticulated very angrily and threatened to go talk with the university directors (that's the only way they will respect you) they started to treat him nicely and get the papers.
My landlord tried to screw me over several times trying to overcharge (the same in restaurants).
Besides this, it's a lovely place, food, people, the women are very nice and friendly, easy to get laid if you can speak the language. But I would never live there if I had to work for an Italian company unless they had a multinational culture.
BTW, when I first went to Italy, the atmosphere reminded me when I visited Buenos Aires, when I was a kid, BEFORE THEY WENT BANKRUPT and thought of themselves developed world and european. Now Argentina is plain cheap, but again, would not work there for an argentinian company, only would live there if I don't have to work or work for a multinational (even then, would not enjoy to have to deal with local business).
Spainish seem more hardworking and humble, I'd think they have more chance recovering than Italy, public service there like public transportation, schools seemed more efficient and better than Italy. Tip: don't get sick in Italy, their hospitals are horrible...my opinion
http://www.youtube.com/watch?v=XfeUUDnqgtw
Jim Grant on Bloomberg - 20th June 2011
On Money Market Funds and why looking for yield in Europe is a BAD BET FOR ALL!
Precisely. Also why the whoosh after Europe closed. Europe wants cash so selling in our markets where liquidity greater. Counterparty risk fears greatly heightened in Europe and constricting trading volumes there. Want cash through weekend and through next week.
Cyber Threat Resembles Pre-9/11 Terror Threat, Says Former CIA Counterterrorism Chief
Government leaders don't understand the gravity of the threat of cyber attacks or the implications, ex-CIA official tells Black Hat attendees.
http://www.wallstreetandtech.com/data-security/231300305?cid=nl_wallstreettech_daily
************************************************************
On Aug. 4, BIDS saw volume hit 136 million shares, its fifth day with more than 100 million shares traded since the dark pool first passed that milestone on July 21. BIDS' average daily volume in July was 72 million shares, up from about 65 million shares in June. (BIDS double counts its volume, a standard practice for dark pools.)
http://www.tradersmagazine.com/news/bids-new-highs-dark-pool-ats-108013-1.html?ET=tradersmagazine:e974:55405a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=tm_weekly_080511
Seriously, these guys never learn? The US is doing this QE stuff for years now, with NO real results. Why the heck do they still think this is a solution to anything?
Ridiculous!
Because it IS a solution as far as the big banks are concerned.
Who cares about those working (or not working) serfs. As long as the stock market is rising and coked up day traders can pretend to be rich and powerful the bankster cartel (who are rich and powerful) is happy.
They dont give a fuck if you or I have to pay $40 for a gallon of gas so long as Xmas bonuses are flowing this year.... they KEEP pushing the buttons you know and soon very soon it will be.... lights out
Theyre going to blow a main breaker soon.
Dog,
Imagine the level of stupidity involved in ramping up th Euro on this news?
Like everything else in this market, it defies "all things that actually make sense." The eurodollar should be collapsing. I suspect that will be the trade by the close.
Thanks criminal syndicate known as Wall Street for perverting every single thing you touch.
Is it just me or does it feel like the markets are ready to implode?? WTH VIX IS INSANE!
Sell the VIX. Now...but again, and maybe in 10 minutes and 12% lower...screaming buy.
And yes...the market is about even on the odds...up or down by an absurd amount...and that is because this is no longer a market of anything.
Just wild brainless kneejerk swings based upon whatever news no matter how ridiculous.
"Because it IS a solution as far as the big banks are concerned."
Exactly. The Squid and the other TBTF will now go to party for the weekend and on Monday they will re-start their campaign: "the death-zone can't work this way!!" GIVE US THE EUROBOND, we are the TBTF and need fresh underlying for our BETS. We have to churn and generate fees and make more CDS bets". And don't forget the EuroTax...
Hail the Squid, may he eat up all the TBTF banks and die of indigestion...
Not just banks: corporate welfare is huge. All that "cash on the balance sheet" was a freebie. The can issue stocks and bonds whenver they want. Then they build their golden parachutes
What do you mean no real reasults? They've reduced my savings purchasing power, swept <my> wealth into the banking elite even though I'm not a borrower, taken ownership of millions of state owned homes and doubled the price of food.
Itally and Spain agreeing to structural reforms.
IMF making more Shylock deals.
This has been a huge success for some.
Intention seems very plain. Like a rolling blackout, this will sweep through the globe, finally landing on US shores unless resistance is met elsewhere that can't be overcome.
People think it is a war on the poor or middle class. It is deeper than that. This is a war on the thrifty, the responsible, the savers. We are rogue elements impossible to ever have full control over, so the best way to deal with us is to whittle us down to nothing.
The price of redemption and acceptance back into the system is easily met...simply kiss the King's ring and accept your gummit check.
Do you confess?
You acknowledge that it is a war. Like every war this government has fought since WW II, they don't understand their enemy. Fighting a "conventional" war against Unconventional forces hasn't worked since Vietnam. The target is changing it's MO, it's face if you will and going off-grid. Sure is hard to tell who the enemy is when they don't wear a uniform annoucing themselves.
William Wallace understood. Freedom!
AAA+
Outstanding comment.
However, I may just add that:
Baby Jesus could have said that; that's how genuine it is.
Did we just have a flash surge in the Dow?
Flash smash in ZH daily traffic!
they had to say anything to stop the stock plunge.
the politicos always comply with the bankstas extortion demands.
Do anything to create panic for QE, as long as they rescue all stock plunges? Where are they showing need for QE then?
that's what I was wondering, too. Bernanke wanted to wait for our markets to crash deeper, but I guess Europe could not wait any longer. That may present a problem for Bernanke. Maybe Bernanke will announce there will be no QE3 -- now THAT would hurt our markets. THEN, later, he can announce QE3.
+Brilliant
Spanish bonds in Andalucia... the shooting sites in the days of '39...
Viva Lorca, y los bodas de sangre que llegan pronto!
Does not matter. Knee jerk reaction by mindless bots. EU is broke and everyone knows it. Commence selling in 3, 2, 1...
Central banks are now just masturbating. They think there is anybody else there except themselves. There is nothing left, they are playing with themselves fantasising that they have a market.
Very well put.
Endgame 1.0.
So who was buying Europe before?
Now back to your regularly scheduled market decline...
QE and a surging euro - ???
Hey, we had to acquire more debt to keep our AAA rating.
Yeah, and austerity leads to a crisis :)
Desperate people grabbing watered down euros. What a world we live in.
' if Berlusconi commits to bring forward specific reforms according to sources '
Such as sticking to adult-age call girls and soft drugs only at bunga-bunga parties?
The good old days are gone for good ...
No, nothing impossible! You can't take his girls and parties away, this would be even stupid to ask...
What they want is what he can deliver: Austerity, a balanced budget, cost cutting, improvements in the tax collection system, etc.
How long before the banksta's ask the same of the Good Ol' US of A?
Well, it looks like never... your leadership seems to want a good 'ol inflation. I'd say 15% next year, for six or seven years.
It will be fun to see what hurts more... 8-(
It's a race to the bottom for all the CBs of the world.
Not idea who will "win", but we already know who will be the losers - roughly 6.8B of them.
Where does the ECB get the money? Is this a "balance sheet expansion"? And are governments now funded solely by the willingness of central banks to print fiat? Why can't the governments print on their own? Also, despite this announcement, still no money has changed hands.
Of course this is a balance sheet expansion, what else?
This is what CBs are designed for.
In a few years the ECB might be at the same point where Bernanke started...
Good Question. I think it's a bluff to carry this thing over the weekend.
Yes they can print on their own, Ireland did. At this moment that could be going on, actually.
someone is liquidating MBS
Merkel is sticking her neck out vis a vis the eurosceptics, now a rising tide in Germany. But she is stuck, as they need the EU market to show growth. Mercantilia!
Will ECB be given carte blanche to buy bonds à gogo? Lets see...We are heading slowly but surely towards Euro bonds, but that needs fiscal harmonisation. Lol, that's a tough one with 26 + perticipants.
But then the EU, politically fronted exercise, drags its feet on economic logic, only moves under extreme pressure, like now.
Must be time for Ireland to put its head up over the wall again.
How could I have forgotten that admitting defeat is bullish
Here a piig there a piig everywhere a piig
Excellent. Former enemies of Germany, Americans and Brits are doing everything they can to build up a nice Empire for Germany. Germania bitches! Without a single shot being fired! The backroom armchair modern day German Rommels are laughing all the way to the bank. :) Ze Plan is working, mein Fuehrer!
Algorithims (Girls) gone wild
C'mon baby, flash me your mnemonics.
Good move on the part of the ECB to take care of this fast and front run the opposition from Berlin. Most German politicians are soaking up the good times on Mallorca and Sardegna and will not be able to prevent this extension of liquidity. I am sure Berlusconi will be eager to make the reforms. This, and GS signalling QE3, will bring us back into a bear market rally to 1280 next week. Covered, went long, ready for QE3.
If markets and economies are the expressions of all hopes and fears of humans, then this is an end-state, as confidence in the market and economy is severely waning.
This can't be fixed by 10,000 more lines of C++. No confidence = game over.
Revolution in Germany to exit the euro. cant be too far away. Germans must scratching their heads as teh watch Merkle give the country's future away.
Who does that fucking whore think she is? I'm sick and tired of so-called elections and always ending up with a goddamn puppet tool of the elites.
A champion for German exporters, and an expert driver in the Global Race To The Bottom.
With birthrate down by a shocking 15%, Germans are going nowhere
the market is totally broken
must......purchase.....more.....solar.....powered.......lanterns....
BAC stick save at 12:00 pm when the 7.99 circuit breakers went off.
The Italians won't take this lightly like the Greeks. They're much more rebellious.
Bwaaahahahaha
The cannoli ration will be raised to two cannoli from three cannoli.
Seems the only question left for the Bernank is the size of the QE. I'm guessing it will be at least $1.5T
per month.
There. I finished your second sentence.
I heard something in the area of only $700B, like last time, but Roubini puts it lower at only $200-300B.
$700 billion wouldnt even impress the banksters....further down the spiral we go.
Exactly.
Look at Brasil......tanking...oh oh....the Latin miracle is about to end I think...and I live in Colombia....
be happy, colombia is rapidly improving. all of your riffraff have moved into ecuador.
This makes complete sense.
Printing another 880 trillion euros to bail out Italy & Spain, is EUR positive.
It's the new math.
Even one of the cheerleaders at Blowhorn tried to point out the problem with this plan. "Where is the ECB going to get this money?" I suppose he was trying to get the guest to admit that the ECB was printing money.
The ECB & EU (and IMF) are going to borrow it from The Bernank & Geithner, or China, or maybe Iceland...
LMMFAO!!!!!!
Complete sense is right.
But you've left out the critical half of the equation:
financial rescues (i.e. restructuring) + economic reforms = success
bailouts (i.e. redistribution) + more of the same = failure
Tell me now, who is doing what, and I'm sure you'll agree that it does make COMPLETE SENSE.
Remember when 'trillion' was a big number?
Why are gild and silver miners getting blowtorched the last 2 days?
Excellent Question.
I was wondering the same.
forced margin calls
As General Jim likes to remind us, when the whorehouse gets raided the piano player gets thrown into the paddy wagon with the rest.
Well to be fair it's not like he was playing at that venue for the money...
OTOH, if we are thinking of the same 'General':
"As strange as it sounds right now, soon you will begin to see the bearish cabal on mining shares looking for cover where gold will be sold for correct precious metals shares."
Boy, is there anything CB's CAN'T do?
We sure are going to find out shortly.
I'd sure like to know where they got all the money to do all the wonderful things they do. They must have really big safes.
They can just keep doing this forver right..What could possibly go wrong.
When you have sociopaths running the game this is the result.
Show us the ECB's balance sheet. Just show us.
<--- Bernank announces QE3 AT Jackson Hole
<--- Bernank announces QE3 BEFORE Jackson Hole
The way I figure it, DOW needs to be below 10K for there to be call for emergency and more QE. No ones scared of anything right now.
I'm starting to get the feeling that the Bernank will not be announcing QE 3 anytime soon. and that's what will push the market off the cliff.
When everybody is expecting (and pricing in) more QE...you just have to question conventional "wisdom".
just my .02
I agree, now theyre just trying to have it both ways for as long as possible...markets driven by hourly rumors and expectations alone.
After it has already begun.
I am a bit foggy on currency markets, wouldn't a move like this bankrupt traders? Currency is normally traded levered correct? Being on the wrong side of this means time to call Sally Strothers and take some courses on gun repair.
pods
Come on, Germans. Fuck the ECB. They won't power share with you. Bunch of frenchie bullshit. Let them eat it.
In response to this announcement, Spain and Italy have reportedly pledged to restructure their economies to focus on the private sector and wealth production, while scaling down their massive government bureaucracies...
Oh wait... They're just going to keep doing the same shit that got them in trouble in the first place. Nevermind.
pledged to restructure their economies to focus on the private sector and wealth production, while scaling down their massive government bureaucracies...
Translation: Corporate and financial sector welfare, covered by cuts in social services and public projects
Globalism = welfare for the rich, indentured servitude for everybody else.
You got it, bor. Just wait til you hear about the new "Tax Reform" package they've cooked up here in the US! Tax cut bonanza for big incomes covered by cuts in dedcutions for middle incomes!
Looks like the currency/credit derivatives market has gone into overdrive the past 10 minutes as it is taking 19miilion in derivatives to create 1 million in GDP per minute-----if you havent barfed your guts out on this roller coaster then you are not a carbon based unit.
Fuck your people over, and we'll buy up some of your fraudulent debt. (forward bill to Germans)
What a deal.
Happy days are here again!
Glass-Steagall is a law that deserves to be enacted worldwide (on a sovereign approved one by one basis)
How to mask a global Great Depression in 3 EZ steps:
-Print Money, Print Money, Print Money
Corporate welfare keeps up appearances by subsituting for demand: you build inventory and burn it back down. Social welfare keeps up appearances by quelling political anger over mass unemployment and prevents your offices from being burned down. You also feed a huge financial secotr, paid to keep robots trading stocks with each other all day long. And you will never have inflation or deflation: because the ongoing depresison actually destroys underlying demand, keeping necessities just barely affordable but always rising in price.
It's a win win!
Here are my thought.
Cash is King
There will be some behind the door "printing"
The ECB might balk at the scale of purchases required to shift Italian and Spanish yields. But it will be months before the beefed-up European Financial Stability Facility can buy bonds.
The stockpiling of cash could be a sign of worry among European banks of troubles they fear could come. U.S. regulators are watching the European situation, especially because of the exposure of U.S. money-market funds to European banks.
If U.S. dollar funds become scarce for foreign banks, they potentially could use a swaps program between the Federal Reserve and the ECB as a source of funding. Under this program, the Fed makes U.S. dollar loans to the ECB, which can in turn lend dollars to European banks that need dollars. The program was used heavily during the financial crisis, but as of July 27 it had been untapped.
Large international companies are sitting on trillions of excess cash. They are just waiting for the right opportunities to swoop down and gobble their weaker competitors. This dip in the stock market is a buying opportunity for those companies.
They are lobbying the US to allow all of their overseas profits to be repatriated -- tax free -- so that they can feed off the near dead.
CHINA --- a lender of last resort.
It must get involved or suffer the consequences of an uncontrolled crash.
jal
We'll loan you more money if you promise to stop borrowing money. Good plan, Europe.
Whilst I fully agree, I couldn't help being reminded of recent US legislative action that was getting a headline or two towards the beginning of the week.
The insanity is global, but pointing it out over there does not imply its ok over here.
We are as crazy as the Greeks, if not more so.
1168 is the near term bottom
And they sell gold and miners. Broken markets all!!!
JUst grab your gold and silver. This is going to be the biggest piig's breakfast in human history.
What if the fucking point of bailing out now, then later, then later and again and again .... these people trying to start WW3?
Yes.
Damn -- and it's looking closer and closer. Nukes will be great for population culling, but how to mediate the after effects? Bizzaro world.
The war will start in Cyprus ....then spread
That;s an easy one to answer
http://www.ynetnews.com/articles/0,7340,L-3748014,00.html
Buffalo, NY – June 30, 2011 -- Cleveland BioLabs, Inc. (NASDAQ:CBLI)1 ) today announced that it received a $1,531,034 increase (including option) in the development portion of the Company’s existing contract, awarded on September 16, 2010, from the United States Department of Defense (DoD) Chemical Biological and Medical Systems (CBMS) Medical Identification and Treatment Systems (MITS) to fund additional development activities for CBL502, a medical radiation countermeasure.
http://www.cbiolabs.com/press_releases/LatestNews.php
Tyler,
just curious, what are you buying or selling now?
My guess would be either:
A) One way tickets to no extradition countries and a few top quality fake passports.
or
B) Canned food and shotguns, baby...canned food and shotguns.
but that's just my guess...
Dried foods are much lighter and less voluminous. Legumes and grains.
they wont help if you cant boil them spas. be sure to stock up on plenty of ready to eat packs. especially if youre on the run from the mob.....
If you can't find water to soak your beans you re pretty fucked anyway.
F-ing A.
Water filters!
A bottle of clorox is a necessity for survival packs. About 5-10 drops per liter will make most water drinkable
Anyone keeping track of how many of these friday afternoon announcements turn out to be vapor?
It's how you haul a ton of canaries in a half ton truck. You need to beat on the cage now and then to keep a bunch of them from roosting.
"if Berlusconi commits to bring forward specific reforms"
somehow, I don't think they mean "if he stops banging 18 year old supermodels".
Prepare for riots...Italian Style:-)
What a strange world in which Wall St sees the announcement by another central bank that it will print money to buy debt as a good and reassuring sign! Kicking the heroin can has become literally reflexive!
Euro-TARP, please let this be the end of the insane European political project we're suffering under.
Reuters is reporting that the European Central Bank is demanding that Italian Prime Minister Silvio Berlusconi commit to fast-track specific welfare reforms and a constitutional amendment enshrining a fiscal rule before it will buy Italian bonds. Some would argue that Italy needs help sooner rather than later.
I think the robots missed that word "before".
Looks like we will run back up to the 200-day, that will be the next place to re-short.
10 out of 11 down days in a row, VXO over 40, and all those panic TICK readings is probably a washout for now.
You? Again?
so you've gone two days ago from the buying opportunity of a lifetime to time to short again. lol!
robottrader: the ultimate dumb money indicator.
next thing you know he'll tell us he sold his silver, and bought gold even as he bashed his own interests ad infinitum ... oh wait. he did. lol!
Really Robo thats how it looks? Well what about you crowing about being all in at 12,700 and everyone else better be too for the big guaranteed debt ceiling deal run up? That just a wash on your paper trading? Gee, go long Eberhard Eraser Company Robo.
how did your prediction of a new 52 week high on the SPX after the debt deal got passed work out for you and why in the world do you think this idiotic prediction is going to work out any better?
Wishing will not make it so.
If you spend your life chasing "Bulls"...you got to expect to step in shit...often.
robo, your tarot card charts are worthless garbage. they predict nothing in a world where movement is based on the mouths of central banks.
Global day of Jubilee on the way....For sovereigns....not us tax paying debt slaves.
Mark my words. It will happen.
Very happy the flash crash, this year, has taken two weeks to choreograph. I fired the PPT boys from last year and brought in some ol' chums from the pre-online brokerage days and they brought their rotary phones with them. Ahhh, the world was such a simple place in '87. Who says you can never go back?
The lesson, the only lesson, of the past 3 years.
Governments will take any action, including murder, to keep the system going so that they retain power.
Anytime there is crisis, there will always be government intervention.
Only one thing will stop it. Oil. You will not like a world of $60 oil. It will be a world with no airplane flights.
ECB has no choice they must buy as much as the rollovers require. Not doing so will kill the euro.
Of what will they buy such debt with? Leveraged defaulted notes and crashing assets? Or freshly printed notes?
Germany will say one thing and do the opposite there is no way Germany kicks up the cash. Name backing only from them.
Sooner or later words will no longer work, but we have been saying that forever. i think this has years more to play out 3-5 maybe.
Some are cashing out now but this can go on for a long time. Still great drama.
http://www.youtube.com/watch?v=0P3lhrwio-M
"Je suis un chien Andalusien..."
debase the currency bitchez!
Margin selling abating now. Miners well off the bottom. Added more. And there goes Timmayys crap dollar. Most of them are crap. What a disgusting govt. we have. This is about as wild I have seen it except for the few times market was bidless.
unreal.. look at this rally.. what a joke.
This clearly and decisively proves that the banksters do not need their heroin..,.I mean QE.
Can someone ask The Bernank?