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Super Mario Enters With A Bang: ECB Cuts Rate By 25 bps To 1.25%

Tyler Durden's picture


The former Goldman banker cutting rates two days after his appointment? Stunning. Next up, we get to listen to an Italian accent instead of a French one for the first time in a decade, at the press conference to be held shortly. The EUR reaction is appropriate: completely schizophrenic.

3 November 2011 - Monetary policy decisions

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:

The interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 1.25%, starting from the operation to be settled on 9 November 2011.

The interest rate on the marginal lending facility will be decreased by 25 basis points to 2.00%, with effect from 9 November 2011.

The interest rate on the deposit facility will be decreased by 25 basis points to 0.50%, with effect from 9 November 2011.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.


European Central Bank
Directorate Communications
Press and Information Division
Kaiserstrasse 29, D-60311 Frankfurt am Main
Tel.: +49 69 1344 7455, Fax: +49 69 1344 7404

Reproduction is permitted provided that the source is acknowledged.


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Thu, 11/03/2011 - 08:49 | 1840536 Hansel
Hansel's picture

This fixes everything!

Thu, 11/03/2011 - 08:50 | 1840547 ChickenTikka
ChickenTikka's picture

Great, we can go home now. I'm gonna go get drunk.

Thu, 11/03/2011 - 09:08 | 1840684 i-dog
i-dog's picture

Yeah ... good plan ... putting a Jesuit in charge of the ECB! This should end well....

Thu, 11/03/2011 - 09:23 | 1840817 sqz
sqz's picture

I'd be more worried about the fact he's Italian and the core of the EZ problems as a currency area are neatly summarized in that one country.

With this rate drop, they have just reduced their tools for managing liquidity, and perhaps more importantly signalled the market for more easing. This increases likelihood of ECB becoming a permanent backstop for EU sovereign debt, with or without the EFSF/ESM, and thus effectively printing (since they seem atrociously bad at sterilizing most of it even at the previous higher reference rate).

Thu, 11/03/2011 - 09:33 | 1840886 Ghordius
Ghordius's picture

i-dog, I thought you have something against my friend of the Order of St. John. Now you have something against Jesuits, too? Did you escape some catholic boarding school or what is it? Were you raped by nuns? Were they hot? Did they force you to do disgusting things?

Draghi is first a EconProfessor, second a Goldmanite, third a career burocrat and fourth an Italian

Ah, I already miss Trichet... bring back, bring back, bring back stabeeleetee to me!

Thu, 11/03/2011 - 09:38 | 1840932 i-dog
i-dog's picture

Goldman is also run by the Jesuits. You obviously missed my rundown a day or so back.

Thu, 11/03/2011 - 09:43 | 1840953 Maxwell Smart
Maxwell Smart's picture

No, Mario Draghi is first a Bilderberger, so World Government is his primary goal.

Thu, 11/03/2011 - 08:53 | 1840583 qussl3
qussl3's picture

They just hit the panic button.

For Draghi to cut is open admission that the EZ economy is imploding.

The implications for balance sheets and debt is dire.

We may rally, but this smells strongly of distribution.

Thu, 11/03/2011 - 09:05 | 1840672 LawsofPhysics
LawsofPhysics's picture

"We may rally, but this smells strongly of re-distribution."


Fixed it for you.  You are right, timing is everything. We rally aaaaannnnndddd, it's gone.

Thu, 11/03/2011 - 08:53 | 1840586 rosex229
rosex229's picture

this should drag down yields on italian bonds right. i'm genuinely curious if that corresponds directly to a 25 pip reduction in the italian 10 yr throwing it back below 6 percent...if not for just a few days

Thu, 11/03/2011 - 09:02 | 1840652 qussl3
qussl3's picture

Doesnt matter, the headlines out of Greece will overwhelm this throw of the dice.

0.25 aint going to do squat if Greece says FU.

Thu, 11/03/2011 - 09:03 | 1840656 Mike2756
Mike2756's picture

.25 rate cut, 50% haircut.

Thu, 11/03/2011 - 09:00 | 1840636 knukles
knukles's picture

Be an Italian
Wear Greece
Bah dump bah dump bah dump bah dump
Watch your Euro
Slide to your Feet....

Gives Surrender a New Meaning.

Thu, 11/03/2011 - 08:50 | 1840539 lapedochild
lapedochild's picture


Thu, 11/03/2011 - 08:50 | 1840541 Tsar Pointless
Tsar Pointless's picture

Truly stunning.

My entire world view has been turned upside-down.

Next, you'll be telling me that the Kim Kardashian/Kris Whateverhisnameis wedding was a made-for-TV farce.

Thu, 11/03/2011 - 08:55 | 1840597 TuffsNotEnuff
TuffsNotEnuff's picture

And the whole damned front page is about Europe.

How 1950....

Thu, 11/03/2011 - 08:50 | 1840544 trampstamp
trampstamp's picture

doesn't the dollar melt up on this?

Thu, 11/03/2011 - 08:54 | 1840588 homersimpson
homersimpson's picture

You think but don't underestimate stupidity.

Thu, 11/03/2011 - 09:18 | 1840757 Hansel
Hansel's picture

ECB is at 1.25%, Fed is at 0% until 2013.

Thu, 11/03/2011 - 08:50 | 1840546 HD
HD's picture

Zirp, zirp and away!

Thu, 11/03/2011 - 08:50 | 1840548 Bazinga
Bazinga's picture

Super Mario crashcart in action!

Thu, 11/03/2011 - 08:50 | 1840550 TooRichtoCare
TooRichtoCare's picture

Super Mario basically telling Trichet that he's a dumfukk for having raised rates to begin with...."delivering price stability IMPECCABLY" my arse...good riddance trichet...long live the new king!

Thu, 11/03/2011 - 08:50 | 1840551 Irish66
Irish66's picture

, FIX is in

Thu, 11/03/2011 - 08:50 | 1840552 vegas
vegas's picture

I told you the mistresses and girlfriends were selling the Euro in the 1.3820's. WTF, it's how the world works.

Thu, 11/03/2011 - 08:51 | 1840555 Ancona
Ancona's picture

That should be good for five percent in Europe today. Yay! More cheap money for everyone.

Wait a minute, these fuckers are still is this going to actually help?

Thu, 11/03/2011 - 08:51 | 1840556 St. Deluise
St. Deluise's picture

start collecting them gold coins

Thu, 11/03/2011 - 08:50 | 1840557 paarsons
paarsons's picture

Another Goldman-Sachs flunkie giving free money to his friends.

What a fucking shocker.

Fuck him in his ass.

Thu, 11/03/2011 - 08:51 | 1840558 reading
reading's picture

Wow, the markets are seriously like an addict getting a crack hit this morning.  Jeez, little jumpy or what.

Thu, 11/03/2011 - 08:54 | 1840590 SofaPapa
SofaPapa's picture

It does feel like that, doesn't it?  The withdrawal pain is going to be ugly...

Thu, 11/03/2011 - 08:56 | 1840610 reload
reload's picture

Yup - quite unreal.

Huge spikes in the european index futures (thank you Mr D longs liquideated at windfall levels)

and a puke in the Euro - the Algos must be blowing their heads off.

What next?

Thu, 11/03/2011 - 08:51 | 1840560 Quintus
Quintus's picture

What's Italian for "Zee price stabileeeteee"?

Thu, 11/03/2011 - 09:06 | 1840651 LMAO
LMAO's picture

"Di praisa stabiliaté"

Or better still:

"Cosa Nostra"

Thu, 11/03/2011 - 09:29 | 1840866 Dealer
Dealer's picture

price stabeeleteee


Thu, 11/03/2011 - 08:51 | 1840565 youngman
youngman's picture

Hmmm I thought they had pretty good inflation in ole Europe...and what about their thinks the Goldman Sachs world is back in charge

Thu, 11/03/2011 - 08:52 | 1840568 PaperBear
PaperBear's picture

Gold to $1,800/oz and silver to £36/oz by the end of todays American market ?

Thu, 11/03/2011 - 08:52 | 1840569 pragmatic hobo
pragmatic hobo's picture

now, this in theory should cause euro to go lower in relation to us dollar, correct?

Thu, 11/03/2011 - 09:05 | 1840663 bonderøven-farm ass
bonderøven-farm ass's picture

It all goes to zero.....when priced to 'confidence' what's the benchmark?

Thu, 11/03/2011 - 08:51 | 1840570 Careless Whisper
Careless Whisper's picture

The former Goldman banker...

There are no "bankers" at Goldman. It's a government backed hedge fund.

Thu, 11/03/2011 - 08:55 | 1840594 sumo
sumo's picture

There are no "former" vampire squid enablers. Once a Goldman always a Goldman.

Thu, 11/03/2011 - 08:56 | 1840607 GeneMarchbanks
GeneMarchbanks's picture

Too true. What if I said government was a Goldman backed slush fund?

Thu, 11/03/2011 - 08:52 | 1840573 Zola
Zola's picture

The European PRINTOCCHIO has arrived ... Time for that long Gold short Euro trade , I ALMOST WAITED !

Thu, 11/03/2011 - 08:52 | 1840574 Sequitur
Sequitur's picture

Zirp = Print = Debasement.

Cramer on CNBC: "rate cuts are good."

Thu, 11/03/2011 - 08:56 | 1840605 HD
HD's picture

Flip a coin. It's more accurate than cramer on his best day.

Thu, 11/03/2011 - 08:59 | 1840633 sumo
sumo's picture

And less volatile. The coin gives you a better Sharpe ratio.

Thu, 11/03/2011 - 08:57 | 1840617 disabledvet
disabledvet's picture

rate cuts are good. it says a total retard has left the building and has not been replaced by another one.

Thu, 11/03/2011 - 09:19 | 1840575 e2thex
e2thex's picture


Thu, 11/03/2011 - 08:52 | 1840577 ArkansasAngie
ArkansasAngie's picture

The first person who loses control of his interest rates loses.

Can the whole world go to ZIRP

Anybody want to loan me $1,000,000 to buy Fayettevile rental property at ... gee ... I don't know ... say 2.5%

I'm a better long term risk than Europe.

Thu, 11/03/2011 - 09:00 | 1840639 GoldBricker
GoldBricker's picture

Can the whole world go to ZIRP?

I think we're about to get some empirical evidence that it both can, and can't.

Thu, 11/03/2011 - 08:53 | 1840581 homersimpson
homersimpson's picture

That would explain why FAZ went down an additional 2% in seconds.. bastards.

Thu, 11/03/2011 - 08:53 | 1840582 vegas
vegas's picture

In about 2 hours, the Mercedes dealership in Athens is going to be busy as hell. Wish I had a webcam there for the bimbo alerts.

Thu, 11/03/2011 - 08:53 | 1840584 AngryGerman
AngryGerman's picture


Thu, 11/03/2011 - 08:58 | 1840623 Belarusian Bull
Belarusian Bull's picture

GIEF ME MOAR, PLZ!!1!1!!111

Thu, 11/03/2011 - 08:53 | 1840585 Matevski
Matevski's picture

Gold just jumped over 1750$...

Thu, 11/03/2011 - 08:54 | 1840589 lizzy36
lizzy36's picture


Problem Solved.

Dow 36,000 here we come.

If only we can FUND the EFSF, but hey maybe germany will check behind the couch cushions again.

Thu, 11/03/2011 - 08:58 | 1840621 GeneMarchbanks
GeneMarchbanks's picture


Thu, 11/03/2011 - 08:58 | 1840629 disabledvet
disabledvet's picture

FYI...i like Triumph bikes.

Thu, 11/03/2011 - 08:54 | 1840592 butchee
butchee's picture

Cap guns are NOT bazookas!

Thu, 11/03/2011 - 08:54 | 1840593 nathan1234
nathan1234's picture

Mario is bottom pinching

Thu, 11/03/2011 - 08:55 | 1840596 PaperBear
PaperBear's picture

Another log goes onto the bonfire of the paper currencies, just in time for Britain's Guy Fawkes weekend.

Thu, 11/03/2011 - 08:55 | 1840604 Stax Edwards
Stax Edwards's picture

Futures now cheer the imminent collapse of the Greek government.  Geez

Thu, 11/03/2011 - 08:59 | 1840631 nathan1234
nathan1234's picture

It's a bankerfu.ker world

For the bankerfu.ker, of the bankerfu.ker and by the bankerfu.ker.

It's time they , along with the crooked politicians are motherfu.ked by the citizens of the world

Thu, 11/03/2011 - 09:00 | 1840637 virgilcaine
virgilcaine's picture

Looks like today will be a wild one... to the battle stations!

Thu, 11/03/2011 - 09:02 | 1840648 Cone of Uncertainty
Cone of Uncertainty's picture

These fools will forever be remembered for being the most incompetent group of financial imbiciles ever to be assembled.


Thu, 11/03/2011 - 09:05 | 1840666 pragmatic hobo
pragmatic hobo's picture

it looks like EURUSD can't decide whether to go lower or go higher ... it truly is a circus ...

Thu, 11/03/2011 - 09:05 | 1840669 Kina
Kina's picture

So the 'markets' are all chuffed that the Euro implosion maybe put off a few months. LoL


Well of course it isn't markets just the TPTB corruption and a few morons picking up pennies because some fuckwits told them it is a sure thing.

Thu, 11/03/2011 - 09:08 | 1840690 LongSoupLine
LongSoupLine's picture

and the middle class loses again...

Thu, 11/03/2011 - 09:10 | 1840704 css1971
css1971's picture

Wow. The DAX is all over the place.

This is going to end so well.

Thu, 11/03/2011 - 09:11 | 1840712 monopoly
monopoly's picture

Thank goodness. Time to sell gold and buy AMZN CMG and PCLN and of course load up on NFLX. Well, I guess Tyler can retire now. All is well.

Give me a freaking break!

Thu, 11/03/2011 - 09:11 | 1840713 TradingJoe
TradingJoe's picture

Wonderful "news" to go short the fuck out of these retards! This true kneejerk will snap back wildly, this thing will be sold like there's no tomorrow...who knows maybe there wont be...?! Daytraders have another field day, if they're smart and fast!

This panic can have only one outcome...DOWN! HFT algos will go NUTS and crash everything!

Thu, 11/03/2011 - 09:12 | 1840719 TuffsNotEnuff
TuffsNotEnuff's picture

ZIRP = regressive redistribution.

The more the better ?????????

Thu, 11/03/2011 - 09:19 | 1840774 Racer
Racer's picture

How long was the ex Goldman in charge of MFG before bankruptcy?

Will this exGoldman do it any faster?

Thu, 11/03/2011 - 09:54 | 1841011 cabernet
cabernet's picture

Nigel Farage... EU Will Collapse (video interview)

Thu, 11/03/2011 - 10:53 | 1841372 SHEEPFUKKER




Fed notes(dead notes)

Got Phyz?

Thu, 11/03/2011 - 18:51 | 1843476 pain_and_soros
pain_and_soros's picture

He's going to do for Europe what he did for Italy...

aka as a reverse the time he's done with Europe, Italy will be ready to take over the continent (with the Vatican's help of course).

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