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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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You are not meant to benefit from this action.
Yep - 400-points on the DOW and 40-points on the S&P... in under an hour.
All because a CB has announced it's going to paper-over some crap sovereign debt with some freshly printed fiat.
What could go wrong?
Clearly you fail to understand the power of debt monetization. Can kicking is now policy
This whole thing is reminiscent of what the conquistadors done to the Indians: Lure them with shiny marbles, teach them to "consume" and take the land.
Buying bonds by banks, basically translates to banks acquiring the IOU notes from land owners ( i.e. mortgage holders whether private, corporate, or sovereign) in exchange for shiny marbles of fiat currency ( which the naive aborigines perceive as gold).
Nothing new under the sun.
This whole thing is reminiscent of what the conquistadors done to the Indians: Lure them with shiny marbles, teach them to "consume" and take the land.
Buying bonds by banks, basically translates to banks acquiring the IOU notes from land owners ( i.e. mortgage holders whether private, corporate, or sovereign) in exchange for shiny marbles of fiat currency ( which the naive aborigines perceive as gold).
Nothing new under the sun.
We need a Central Banker's prison where all central bankers can be sent to spend eternity have Zimbabwe notes shoved up their rectums.
That would be next door to Congress prison where every banker owned and corrupted Congressperson will spend eternity eating the bankers used Zimbabwe notes. Like they do now.
Then there could be a corrupt regulators prison with a SEC wing and CFTC wing where paper silver and gold can be shoved up the rectums for eternity.
This reminds me of 2008. 350 pt rally on the Dow in less than an hour....lunch hour of course.
No one dip bought that surge. Sell it before you called, hedgies. This was a gift. You only get one today
Gee what happened to the scare tactics for QE3? Now all is well again and DOW just swung from -300 to +100 again?
Well theyve accomplished 1 thing for sure, an obvious total farce of a market.
It's going to be pretty damn hard to hit that nasty sub 10k level needed for the Bernanke to launch QE infinity if we keep having these surge days.
Doesn't Spain and the ECB understand that? Why aren't they playing ball?
Down,up, down, up, down, up, down, up....I think I need some Dramamine.
Or vaseline and a kleenex.
Wait...where am I?
Some headlines:
http://www.businessweek.com/news/2010-11-29/u-s-wary-of-italy-russia-ties-guardian-says-citing-wikileaks.html
http://www.msnbc.msn.com/id/43501551/ns/world_news-mideast_n_africa/t/italys-call-libya-ceasefire-exposes-nato-rift/
http://en.rian.ru/world/20110805/165570384.html
"NATO is planning a military campaign against Syria to help overthrow the regime of President Bashar al-Assad with a long-reaching goal of preparing a beachhead for an attack on Iran, Russia's envoy to NATO Dmitry Rogozin said."[This statement] means that the planning [of the military campaign] is well underway. It could be a logical conclusion of those military and propaganda operations, which have been carried out by certain Western countries against North Africa," Rogozin said in an interview with the Izvestia newspaper published on Friday. The Russian diplomat pointed out at the fact that the alliance is aiming to interfere only with the regimes "whose views do not coincide with those of the West." Rogozin agreed with the opinion expressed by some experts that Syria and later Yemen could be NATO's last steps on the way to launch an attack on Iran. "The noose around Iran is tightening. Military planning against Iran is underway. And we are certainly concerned about an escalation of a large-scale war in this huge region," Rogozin said."
Makes sense. The war on Iraq was planned long before the dog& pony show at the UN. Hotel rooms and warehouse space in Kuwait had been booked / located for fucks sake.
Better approach than when Nazi Germany tried to secure the North African oil fields but still, imperialism is imperialism.
After months of of top US diplo going through the revolving iraqi door...
http://www.csmonitor.com/World/Middle-East/2011/0803/Iraq-signals-willingness-to-allow-some-US-forces-to-stay
Which is critical considering the supply lines into the possible eastern front are looking shakey (from the east and the north)
http://english.alarabiya.net/articles/2011/08/05/160935.html
http://www.eurasianet.org/node/63973
There will be blood ...
in italy you don't reform banks, banks reform you.
So now the ECB is the acting IMF....
What a fuking joke this whole pass the buck ponzi scheme is.
Trichet put, but what about Germany?
ECB Italian story doesn't hold water beyond headlines..unless they come up with 2 trillion EUR
Watching the ECB bail out Italy and Spain is gonna be fun.
It's gonna be like watching Sisyphus push his mighty rock up a mountain and proceed to watch it fall all the way back down again....
So the ECB says they will buy Italian bonds only if they enact reforms. Hope you enjoyed self rule while it lasted, Italy. You can probably start saving money by eliminating most of your governement as it is obvioulsy no longer needed.
Dow / S&P will close red I believe. EURXXX will close red I believe.
These QE announcements last a few hours now. People are (finally) waking up and seeing the QE sham for what it is.
If they close green it'll be a bloodbath monday.
The reversal?? is it really about ECB??
IT'S NOT QE3, IT'S QE-E!!!!!!! QE Europe!
EWI, EWP, GLD Bitchez!
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